The Caisse de dépôt et placement du Québec invests with Cascades Inc. in a new mill

The Caisse de dépôt et placement du Québec announces an investment in the construction of a containerboard mill in Niagara Falls, New York. This large-scale project will be managed by the Norampac division of Cascades Inc. The Caisse’s US$74 M investment includes an equity investment of US$28.3 M and a subordinated loan of $US45.75 M.

“This investment is in line with our commitment to contributing to the economic development of Québec by helping local firms accelerate their international growth,” declared Normand Provost, Executive Vice-President, Private Equity, and Chief Operations Officer at the Caisse. “Cascades is a company we know well, and this is a top-quality project offering attractive returns for a long-term investor such as the Caisse.”

The Caisse and Cascades have been partners for many years, and the containerboard mill is the largest joint project of the two organizations.

“The Caisse played a key role in the funding of this project, and we are delighted to be able to rely once again on the trust of this Québec institution as we pursue our international expansion strategy,” noted Alain Lemaire, President and Chief Executive Officer of Cascades. “This mill will strengthen our presence in the North American market.”

“This is another prime example of the significant contributions made by the Caisse to the growth of Québec companies, which must continually innovate to remain competitive. This state-of-the-art mill will enable Cascades to remain at the forefront of its industry and a leader in environmental stewardship,” added Provost. 

ABOUT THE GREENPAC MILL
The Greenpac mill will be built at a cost of US$430 million on property adjacent to an existing Norampac facility in Niagara Falls, New York. Construction will begin in July 2011 and the start-up is planned for summer 2013. 

ABOUT CASCADES
Founded in 1964, Cascades produces, converts, and markets packaging and tissue products composed mainly of recycled fibres. The company employs more than 11,000 men and women at more than 100 operating divisions in North America and Europe. Its management philosophy, its more than 45 years’ recycling experience, and its on-going research and development efforts are strengths that enable Cascades to create innovative products for its customers. Cascades’ shares trade on the Toronto Stock Exchange under the ticker symbol CAS.

ABOUT THE CAISSE DE DÉPÔT ET PLACEMENT DU QUÉBEC
The Caisse de dépôt et placement du Québec is a financial institution that manages funds primarily for public and private pension and insurance plans. As at December 31, 2010, it held $151.7 billion in net assets. As one of Canada’s leading institutional fund managers, the Caisse invests in major financial markets, private equity and real estate. For more information: www.cdpq.com.