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Norampac enters packaging joint venture in Atlantic Canada

Cascades Inc. has announced an agreement between its subsidiary Norampac and Maritime Paper Products Limited (MPPL) to create a joint venture for their corrugated board activities in the Atlantic Provinces. The transaction is subject to the approval of the Competition Bureau of Canada.

MPPL will own 60% of the new joint venture, with the remainder being owned by Norampac. The new entity will operate as Maritime Paper Products Limited Partnership. Under the terms of the agreement MPPL will oversee management of the joint venture while Norampac will be a key supplier of containerboard.

If the transaction is approved, the Norampac operations located in Newfoundland and Moncton will be integrated with those of MPPL, ensuring future growth for the joint venture, and a more comprehensive range of products for its customers.

Marc-André Dépin, president and CEO of Norampac, says the new venture “aims to provide customers with an improved product line and a higher level of service through the combined strengths of Norampac and MPPL. This will advance our objective to modernize our production equipment and continue innovation in terms of our product offering."

Until the closing of the transaction, Norampac's Newfoundland and Moncton plants will continue to operate under the current management within the Norampac Group.

According to Gary Johnson, president of MPPL, the joint venture will ensure the long term supply of competitively priced, quality corrugated packaging for the Atlantic region.

Cascades produces, converts and markets packaging and tissue products that are composed mainly of recycled fibres.

Maritime Paper manufactures corrugated cartons and custom packaging from manufacturing facilities located in Dartmouth, N.S., and St. John’s, Nfld. The company employs 165 people in Atlantic Canada and is part of the Scotia Investments Limited group of companies.

Source: pulp and paper canada


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