September 20, 2011 / 10:08 PM / 7 years ago

UPDATE 1-Cascades to sell Burnaby mill as costs rise

Sept 20 (Reuters) - Packaging and paper products maker Cascades Inc said its Norampac division will sell a containerboard mill in Burnaby, British Colombia to stave off rising labor and fibre costs and below-par profits from the asset.

The mill will be shut by Dec. 1 and will affect about 100 employees.

Production at the mill, which has an annual capacity of 128,000 tons, will be redirected to other Norampac facilities, the company said in a statement.

“The mill’s profitability has been below our expectations for a few years and we could not pursue our operations under such conditions,” Norampac’s Chief Executive Marc-Andre Dépin said.

Shares of Cascades closed at C$4.38 on Tuesday on the Toronto Stock Exchange. (Reporting by Sumit Jha in Bangalore; Editing by Roshni Menon)

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