Cascades Announces Exit from Honeycomb Packaging and Partition Business Segments

Cascades Inc. (TSX: CAS,OTC:CADNF) announces the discontinuation of its activities in the honeycomb paperboard and partition packaging product sectors. As a result, its three plants located in York, PA, and Saint-Césaire and Berthierville, QC, will be closed.

Cascades is committed to optimizing its operating platform and business activities by focusing on its strategic markets as a partner of choice for its customers. The plants being closed specialize in niche markets that are no longer aligned with the company's long-term growth plans.

The assets have been acquired by the company Emballages LM, located in Saint-François-de-la-Rivière-du-Sud, QC, for approximately $9 million. Emballages LM is a major North American producer of honeycomb paperboard that aims to ensure a smooth transition with customers and maintain service quality.

The closure of the Berthierville honeycomb packaging plant is effective immediately, impacting 52 employees. The company Emballages LM, located in Saint‑François‑de‑la‑Rivière‑du‑Sud, QC, will acquire certain assets later today for approximately $9 million. Emballages LM is a major North American producer of honeycomb paperboard that aims to ensure a smooth transition with customers and maintain service quality.

The York, Pennsylvania facility will be closed permanently by no later than February 19, 2026. This plant specializes in the manufacturing of honeycomb packaging products, for which declining regional customer demand no longer ensured profitability. 37 employees will be impacted by this closure.

The Saint-Césaire facility specializes in the manufacturing of cardboard partitions for the beverage market. The plant's profitability has been negatively impacted over several years due to a continuous decrease in market demand. The plant's geographic distance from its main customers has also reduced its competitiveness. As a result, operations will cease no later than April 17, 2026, impacting 25 employees.

Cascades will work closely with the employees of these three plants to provide the support needed throughout this transition. Job search assistance resources will be offered by the company to those who require them. Cascades also encourages employees that are impacted by these decisions to apply for positions at its other facilities.

"Focusing Cascades' assets on its strategic markets is essential to achieving our optimization and profitability improvement objectives. The markets served by these plants no longer align with the business strategy of our Packaging sector. This refocusing will allow us to invest in strengthening our position as a partner of choice for customers in our priority sectors. I would like to extend a heartfelt thank you to the employees of these three facilities for their dedication and contributions over the years," said Hugues Simon, President and Chief Executive Officer of Cascades.

These announcements do not affect the activities of the Cascades Sonoco – Berthierville plant, located adjacent to the Berthierville plant.

Founded in 1964, Cascades offers sustainable, innovative and value-added packaging, hygiene and recovery solutions. The company employs more than 9,000 talented people across a network of 60 operating facilities in North America. Driven by its participative management, half a century of experience in recycling, and continuous research and development efforts, Cascades continues to provide innovative products that customers have come to rely on, while contributing to the well-being of people, communities and the entire planet. Cascades' shares trade on the Toronto Stock Exchange under the ticker symbol CAS.

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