Cascades to close its conversion plant in Le Gardeur, Québec, as part of consolidation of its Norampac Division's corrugated products converting business in Québec; closure to affect almost 50 employees

KINGSEY FALLS, Quebec , October 12, 2011 (press release) – Cascades Inc. (TSX: CAS), a leader in the recovery of recyclable materials and the manufacturing of green packaging and tissue paper products, announces it will continue the consolidation of its Norampac Division's corrugated products converting operations in Québec. The consolidation will result in the closure of the Norampac plant located in Le Gardeur.

The Le Gardeur plant is specialized in the conversion of corrugated products, and has annual revenues of $8 million. In preparation for this closure, the plant's operations will be redirected progressively towards the other Norampac Québec based plants, that already serve the greater Montreal region. Nearly 50 employees will be affected by this closure that will be effective before the end of 2011.

"The decision to cease operations at the Le Gardeur plant can be explained by the necessity to continue the consolidation of our Québec operations. In fact, the demand in the Canadian corrugated industry has been affected by unfavorable economic conditions for the past few years and it is imperative that we make the adjustments to take into account this new reality. This initiative will therefore allow us to optimize our production in the province, reduce our costs, improve our profitability, while continuing to offer quality services to our customers", declared Mr. Marc-André Dépin, President and Chief Executive Officer of Norampac.

In order to help employees affected by this closure, Norampac has prepared a relocation program throughout its other facilities and will offer assistance regarding employment searches.

Founded in 1964, Cascades produces, converts and markets packaging and tissue products that are composed mainly of recycled fibres. The Corporation employs close to 11,000 employees, who work in more than 100 units located in North America and Europe. Its management philosophy, its more than 45 years of experience in recycling and its continued efforts in research and development are strengths that enable Cascades to create new products for its customers. Cascades' shares trade on the Toronto Stock Exchange, under the ticker symbol CAS.

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