April 12 (Reuters) - Cascades Inc said it will close its loss-making Norampac containerboard mill in Trenton, Ontario, affecting about 130 employees.
The mill, which makes containerboard used to make corrugated shipping boxes, has incurred significant losses over the years, the company said.
The packaging and tissue paper maker also said it could not agree with the Communications, Energy and Paperworkers Union of Canada (CEP) on new labor terms at the mill despite nearly a year of negotiations.
"These losses, combined with unacceptable labour relations, have left us with no other choice but to close the mill," Chief Executive Marc-Andre Dépin said.
The mill will be shut down no later than June 1 this year, the company said.
Cascades shares were down 2 Canadian cents at C$4.02 on Thursday afternoon on the Toronto Stock Exchange.