KINGSEY FALLS, Que. – Packing company Cascades says it will close the company’s Swedish boxboard plant in Ronneby in June because of weak market conditions.
The closure of the plant affecting 130 employees was announced Wednesday after Cascades reached an agreement with union leaders.
Chief executive Mario Plourde said the company is reorganizing its European production activities in light of the economic situation in order to better compete.
The plant, acquired in 1989, it has an annual production capacity of 60,000 tonnes of material for folding boxes made from virgin fibres. Cascades (TSX:CAS) said the Swedish plant’s customers will be supplied from its mill in France.