|Traded as||TSX: CAS
|Headquarters||Kingsey Falls, Quebec, Canada|
|Key people||Alain Lemaire (CEO)|
|Revenue||3.93 billion USD (2007)|
|Net income||95 million USD (2007)|
Cascades is a company that produces, converts, and markets packaging and tissue products composed mainly of recycled fibres. Cascades employs more than 11,000 men and women in more than 100 modern, versatile operating units in North America and Europe. It is was founded in 1964.
The Lemaire family founded the Drummond Pulp & Fibre company in 1957 which is involved in the recovery of household and industrial waste.
In 1964, Antonio Lemaire and his sons officially ventured into the production of paper made from recycled fibres when they took over a disaffected mill in Kingsey Falls,(Quebec), owned by the Dominion Paper Co.. Papier Cascades Inc. was born of that transaction.
In 1971, Cascades began its expansion in Kingsey Falls with the creation of Cascades Forma-Pak, its first moulded-pulp mill to use 100% recycled fibres. The event marked the beginning of a veritable paper-making corporation in a small town in the center of Québec from 1972 to 1977: the successive start-up of Papier Kingsey Falls (multi-layer board), Cascades Industries (tissue paper), Plastiques Cascades and Cascades Conversion.
In 1976, the Lemaire brothers "brought their skill and knowledge" outside Kingsey Falls for the first time with the start-up of the containerboard mill Papier Cascades in Cabano (Québec). This was the beginning of a great adventure that would bring Cascades all over the world.
In 1983 Cascades' shares began trading on the Montreal Stock Exchange. That same year, its entry into the United States began with the start-up of Cascades Industries Inc. in Rockingham, North Carolina. In Québec, Cascades began producing kraft paper in East Angus and acquired a boxboard plant in Joncquière the following year.
In 1985, the company made its entry into Europe with the acquisition of a boxboard plant in La Rochette, France. This new expansion took shape in 1986 with the creation of Cascades S.A. and the acquisition of another French boxboard mill in Blendecques. From 1987 to 1989, other mills located in Sweden and Belgium became part of the Cascades Group as well: Djupafors AB in Sweden and Kartonfabriek van Duffel NV in Belgium. The Belgian mill was renamed Cascades Duffel NV but ceased its production in 1993 after heavy losses and then was immediately transformed into a cutting center for the other European mills of the group. Declared definitively closed in the accounts of 1997, it was reconverted in 2002 by the ex-President of the Board of Cascades, Laurent Lemaire, to a so-called internal commercial agency, under the name with slightly modified orthography of Cascade Duffel NV, and having only one unit of establishment called Korton Fabrick van Ouffel, located at the exact address of the old mill Kartonfabriek van Duffel which was resold by Cascades to another company in 1998. This so-called agency (before different fiscal controles ...), without collaborator working in Belgium, was implied at the time of exports of cartonboard out of Europe, in particular those in transit by the port of Antwerp (according to Boards of directors of Cascades SA of June 28, 2002 and Nov 3, 2003). Since 2009, M. Stephane Thiollier and M. Vincent Lestringant (despite he died in... 2005) are not anymore Members of the Board of Cascades Duffel NV. Both have been replaced in May 2009 by M. Jean Goulet (General Manager of Cascades SAS / France) and by M. Zaki Haned (Investor Relations Manager at Reno De Medici). But if Cascades Duffel NV was "liquidated" with immediate effect the 28/12/2011, the "story" seems not finished yet......
(see also the 4 last "external links" below...)
The 80's decade played out in a spirit of innovation with the creation of a Research and Development Center in 1985 in Kingsey Falls. The facility became the largest private Canadian Research and Development Center in the pulp and paper industry.
On the eve of the nineties decade, Cascades became daring when it created Cascades Énergie. This subsidiary controlled a brand new cogeneration plant powered by natural gas, the first in Canada, and whose mandate was to provide the energy required by all the Cascades mills in Kingsey Falls. The success of this project enabled Cascades to invest further in the prospective energy sector with the acquisition of Boralex in 1995. Today, Boralex's shares are traded on the Toronto Stock Exchange in which Cascades holds a 34% interest.
Cascades Énergie paved the way for a series of acquisitions in which Cascades' activities were largely diversified. The purchase of Rolland and Paperboard Industries Corporation in 1992, Perkins Papers in 1995, Provincial Papers in 1997 and, that same year, the creation of Norampac in partnership with Domtar, led to the restructuring of Cascades into five distinct corporate groups whose operations were focused as much in the sector of specialized packaging as in those of containerboard, tissue paper, fine papers and boxboard.
On an international level, Cascades' expansion continued in Europe with the acquisition of the boxboard mill in Arnsberg (Germany) in 1997 and the start-up of a sheeting operation in Wednesbury (England) in 1998.
Upon entering the new millennium, the scope of the tissue paper sector grew in 2001 with the acquisition of the mills in Pennsylvania and in Wisconsin. Two years later, the group sustained its momentum and set up shop in Alberta, in New York, in Arizona, in Oregon and in Tennessee. In 2004, the boxboard sector stood out with the acquisition of Dopaco Inc., a leader in the packaging products sector destined for the quick service restaurant industry. Not to be left out, Norampac proceeded with the implementation, between 2001 and 2006, of several ultra-modern corrugated cardboard mills in Canada and in the United States.
In 2004, Cascades created in Europe four new companies in Luxembourg (Cascades Luxembourg Sarl, Norampac Luxembourg Sarl, Cascades Hungary Ltd Luxembourg Branch and Norampac Ltd Luxembourg Branch). Beginning of 2010 Cascades Canada Inc Luxembourg Branch was created, and with the closure of Cascade(s) Duffel NV in Belgium, the closure of Norampac Ltd Luxembourg Branch and the existing Pulp & Paper Cascades NV (become BV ?) in the Netherlands, that carries to four the number of companies in service in 2012 into the Benelux without any co-worker who works on it(Norampac Luxembourg Sarl was closed in September 2008 by incorporation into Cascades Luxembourg Sarl (new capital February 2012: USD 64 933 600,00 ) and beginning of February 2012, Cascades Canada Inc Luxemburg Branch changed her name to Cascades Canada ULC Luxembourg Branch.
An appreciating Canadian dollar, an increase in energy prices and the cost of fibre, fierce competition: the 2000s also provided challenges for Cascades, which forced it to implement a significant rationalization plan. This process resulted in, the closure of mills in Thunder Bay, Montréal, Red Rock, Pickering, Buffalo and Boissy le Chatel. In 2005, the company proceeded with the sale of its fine papers (Cascades Resources) and its tissue paper (Wood Wyant) distribution assets.
With the purchase of Domtar's shares in Norampac in 2006 and the merger of its European boxboard operations with Reno de Medici in 2007, Cascade has consolidated its position as a leader in the containerboard and boxboard sectors.
In 2008, North-American boxboard activities were integrated into Norampac's cartonboard activities. In addition to creating synergy, this integration allowed better sharing of technology and led to the creation of a larger packaging group to meet the needs of clients in Canada and the United States.
In 2011, Cascades named Mario Plourde Chief Operating Officer, enabling Alain Lemaire, President and Chief Executive Officer, to devote more time to the strategic vision of the company. Also in 2011, Cascades sold Dopaco Inc., its paper cup and carton converting business for the quick-service restaurant and foodservice industries, to Reynolds Group Holdings Limited. Net proceeds from the transaction will mainly be used to pay down Cascades' debt.
In keeping with its origins but definitely being forward-looking, Cascades is banking on its products that contain a high percentage of recycled fibres to distinguish itself from the competition, while remaining committed to the principles of sustainable development that is so dear to its corporate philosophy. Cascades also demonstrates that it understands that only innovation and the marketing of environmentally sound products will guarantee its future success.
Cascades is a member of the Forest Products Association of Canada.
- GlobeInvestor.com – Cascades Inc.
- The New York Times. Published: August 25, 2004. Company News; Cascades Purchases Remaining Half of Dopaco
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