Cascades’ Norampac division will invest in Greenpac Mill to build and operate a modern containerboard mill in New York State. The mill will be developed on a site located near the existing Norampac plant in Niagara Falls, New York.
Jamestown Container, the Caisse de dépôt et placement du Québec (the Caisse) and an unknown industry partner have established the company, Greenpac Mill. The total investment required to construct the new containerboard mill is $430 million. The mill will feature an equipment with 8.33 m width that will produce linerboards manufactured with 100% recycled fibres. The equipment will have a production capacity of 540,000 short tons per year.
The project cost will be funded by an equity investment worth $140 million in Greenpac Mill in which Cascades will invest $83.6 million, the Caisse will invest $28.3 million and Jamestown Container, with another industry partner, will invest $28.1 million. The remaining amount will be financed through debt, of which GE Capital-managed international banking syndicate will provide a senior debt of $228.9 million, and a subordinated debt worth $61 million will be offered by Cascades and the Caisse.
According to the President and Chief Executive Officer at Norampac, Marc-André Dépin, the new equipment at the Greenpac mill will produce lightweight linerboard with optimal strength, enabling the company’s customers to address the demand for lightweight packaging.
Metso will develop the paper equipment; Siemens will offer the power and control technology, while Voith will offer the anaerobic effluent treatment plant and stock preparation equipment. Cascades and its recovery operations will supply the recycled fibres. The mill’s site is strategically located in terms of procurement of raw materials such as old corrugated containers, which are abundantly available in the region.
Source: http://www.cascades.com