Cascades Bear Island Project Update

Bear Island mill, Ashland,Virginia

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The Bear Island strategic investment in the conversion of assets to recycled containerboard production is progressing well despite the current environment of important cost inflation and delays in the completion of certain construction milestones due to labour and material availability.

The initial total investment of $475 million (US$380 million) was revised upward in the first quarter of 2022 to a range of $530 -$565 million (US$425 - US$450 million) following continued inflationary pressure on costs. The persistence of these factors and short-term construction interruptions caused by delivery delays of construction materials, have further impacted the total cost of the project, which is now forecast to total $595 - $615 million (US$470 - US$485 million).

The announced start-up date of the facility is December 14, 2022. However, the timing of some critical construction milestones may be at risk due to labour, supply chain and material availability which may in turn delay the start-up of paper production to the first quarter of 2023.

The Corporation is working closely with contractors to mitigate the potential delay caused by these elements in order to meet the targeted mid-December 2022 start date.

Founded in 1964, Cascades offers sustainable, innovative and value-added packaging, hygiene and recovery solutions. The company employs approximately 10,000 women and men across a network close to 80 facilities in North America.

Source: Cascades