/C O R R E C T I O N -- Cascades Inc./

Executive Summary

• Cascades Inc. announces the discontinuation of its honeycomb paperboard and partition packaging product sectors, resulting in the permanent closure of three manufacturing plants in York, PA, and Saint-Césaire and Berthierville, QC.
• The strategic move aims to optimize the operating platform by focusing on strategic markets, as the closed facilities serve niche markets no longer aligned with long-term growth plans or profitability targets.
• Asset sales and employee impacts are defined: the Berthierville plant assets are being sold to Emballages LM for approximately $9 million, while the York and Saint-Césaire plants will close by mid-2026, impacting a total of 114 employees across the three sites.

Key Details

• Berthierville Plant (QC):
  • Closure effective immediately.
  • 52 employees impacted.
  • Assets acquired by Emballages LM (a major North American producer of honeycomb paperboard) for approximately $9 million to ensure customer transition and service quality.
• York Plant (PA):
  • Permanent closure by no later than February 19, 2026.
  • Reason: Declining regional customer demand no longer ensured profitability.
  • 37 employees impacted.
• Saint-Césaire Plant (QC):
  • Operations cease by no later than April 17, 2026.
  • Reason: Profitability negatively impacted by continuous decrease in market demand and geographic distance from main customers reducing competitiveness.
  • 25 employees impacted.
• Total Employee Impact: 114 employees across the three facilities will be affected, with job search assistance offered by Cascades.
• Strategic Rationale: The refocusing allows Cascades to invest in strengthening its position in priority sectors and improve profitability.
• Exclusions: The announcement does not affect the adjacent Cascades Sonoco - Berthierville plant.

Notable Quotes

• "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. This refocusing will allow us to invest in strengthening our position as a partner of choice for customers in our priority sectors." — Hugues Simon, President and Chief Executive Officer of Cascades.