January 7, 2008 ~ Thunder Bay The Thunder Bay Fine Papers Inc Cascades mill is set to re- open in Thunder Bay, Ontario with help from the Northern Ontario Heritage Fund Corporation (NOHFC).
“Bringing this project to this point is due in no small part to the incredible efforts of many people who continue to see the tremendous potential for growth and prosperity within our region’s forest products industries despite the inherent challenges facing the sector,” said Gravelle. “Today, we salute this unwavering optimism and this unrelenting commitment to building a better future for many workers and families in THUNDER BAY.”
“Let me offer my congratulations to all of the stakeholders who have worked so hard for so long to bring us to this point today,” said Mauro. “I am thrilled that our government, through our Forest Sector Programs and the Northern Ontario Heritage Fund, has been able to assist in the reopening of this facility and excited about the employment opportunities that have been created today.”
The Northern Ontario Heritage Fund Corporation (NOHFC) has offered a $1.5-million loan to THUNDER BAY Fine Papers Inc., a group of investors that has been working to reopen the former Cascades Fine Paper Mill, to finalize financing arrangements necessary to re-open the mill. The McGuinty government last fall announced a grant of $1.5 million and a conditional loan guarantee of $12.7 million through its Forest Sector Prosperity Fund to re-start the mill that closed in early 2006. When fully operational, the re-opened plant could employ approximately 340 people.
“Restarting this mill would mean that many men and women could look forward to earning a living and a regular paycheque that a few months ago seemed lost forever,” said Gravelle, who also chairs the NOHFC. “I am delighted that the NOHFC was also involved previously by providing funding of $96,250 for a comprehensive business plan that made it possible to develop the necessary partnerships to re-open the mill.”
“This further commitment builds on what the government has already done to help get this mill operating again,” said Natural Resources Minister Donna Cansfield. “While these are challenging times for the forest industry, our government is continuing to work on strengthening the industry across the province.”
This is just one more example of how, working together, Ontarians have achieved results in support of private sector business growth and innovation in Northwestern Ontario. Other examples include:
• making a total investment of more than $549,000 to help Genesis Genomics Inc. develop and subsequently commercialize a new prostate cancer test
• committing to invest more than $1-billion over five years in a Forest Sector Prosperity Fund to help forest companies invest in their own future and the future of the communities that depend on them
• providing $258,000 to Superior Thermowood in Kakabeka Falls to help develop and test the process of drying undervalued types of raw lumber to make them more commercially marketable.
These initiatives are part of the government’s Northern Prosperity Plan. It has four pillars: Strengthening the North and its Communities; Listening to and Serving Northerners Better; Competing Globally; and Providing Opportunities for All.
KINGSEY FALLS, QC, Jan. 7 /CNW Telbec/ - Cascades (CAS-TSX) is announcing the sale of its coated fine papers manufacturing plant located in Thunder Bay, in Northern Ontario. Cascades will contribute $4.5 million to the purchaser, Thunder Bay Fine Papers Inc., in order to support the start-up of the plant.
In commenting on this transaction, Mr. Mario Plourde, President and Chief Operating Officer of Cascades Specialty Products Group, stated: "Cascades is pleased to announce this transaction which will allow us to participate in the creation of new jobs in the community while limiting the costs associated with
maintaining the mill".
The Thunder Bay plant ceased operations in January 2006 because of unfavourable economic conditions.
Founded in 1964, Cascades produces, transforms and markets packaging and tissue products composed mainly of recycled fibres. Cascades employs close to 14 000 employees who work in more than 100 modern and flexible production units located in North -America and Europe. Cascades' management philosophy,
its more than 40 years of experience in recycling, its continued efforts in research and development are strengths which enable the company to create new
products for its customers. The Cascades shares trade on the Toronto stock exchange under the ticker symbol CAS.
Certain statements in this release, including statements regarding future results and performance, are forward-looking statements (as such term is defined under the Private Securities Litigation Reform Act of 1995) based on current expectations. The accuracy of such statements is subject to a number
of risks, uncertainties and assumptions that may cause actual results to differ materially from those projected, including, but not limited to, the effect of general economic conditions, decreases in demand for the Company's products, increases in raw material costs, fluctuations in selling prices and
adverse changes in general market and industry conditions and other factors listed in the Company's Securities and Exchange Commission filings.