Cascades to close three packaging plants as it exits honeycomb and partition segments

CANADA – Cascades has announced the closure of three packaging facilities across Canada and the United States as it exits the honeycomb paperboard and cardboard partition packaging segments.

According to the company, this marks a further step in the company’s strategy to refocus on core, higher-margin markets.

The closures affect sites in Berthierville and Saint-Césaire, Quebec, as well as York, Pennsylvania, and are expected to impact a total of 114 employees.

Cascades said the decisions reflect sustained declines in demand and structural challenges that no longer support profitable operations in these segments.

The Berthierville, Quebec, facility, which produces honeycomb paperboard packaging, has ceased operations with immediate effect.

The closure affects 52 employees. Cascades confirmed that certain assets from the site will be sold to Canadian packaging firm Emballages LM for approximately C$9m (US$6.5m).

Emballages LM plans to transition customers and continue supplying honeycomb paperboard products, ensuring continuity for the market.

In the US, Cascades’ York, Pennsylvania, plant is scheduled to close by 19 February 2026. The site has been impacted by a drop in regional demand, which the company said no longer justifies continued operations. The closure will affect 37 employees.

Meanwhile, the Saint-Césaire, Quebec, facility, which manufactures cardboard partitions primarily used in beverage packaging, is set to shut down by 17 April 2026.

Cascades cited declining market demand and logistical constraints as key factors behind the decision, with 25 jobs affected.

Cascades said it will provide job search assistance to impacted employees and encourage internal mobility where possible.

The company confirmed that the closures will not affect its neighbouring Cascades Sonoco plant in Berthierville, which operates independently of the impacted honeycomb site.

Hugues Simon, president and CEO of Cascades, said the move reflects a broader strategic realignment.

“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,” he said.

The announcement follows a series of portfolio adjustments by Cascades.

In January, the company agreed to sell its corrugated packaging plant in Richmond, British Columbia, to Crown Paper Group for C$65.5m (US$48.4m).

The transaction includes the transfer of real estate and certain liabilities and is expected to close shortly, subject to customary conditions.

Across North America, packaging producers are reassessing capacity in response to shifting demand patterns, rising logistics costs and customer consolidation.

Cascades said the latest closures will allow it to redeploy capital toward priority sectors where it aims to strengthen its position as a long-term packaging partner.

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