Smurfit Westrock has announced the permanent closure of a paper machine at its La Tuque mill in the Canadian province of Quebec. In addition, an associated extrusion plant in Pointe-aux-Trembles will be closed.
Smurfit Westrock announced that the affected paper machine could no longer be operated competitively due to ongoing scaling and cost challenges. The measure is part of a strategic realignment to strengthen the SBS portfolio and ensure the long-term competitiveness of the company's cartonboard activities.
Production capacities and jobs affected
In addition to the closure of the paper machine in La Tuque, the extrusion plant in Pointe-aux-Trembles, which processes the qualities of SBS cardboard produced there, will also be closed. The two measures will result in the loss of around 30 jobs in La Tuque and around 60 jobs in Pointe-aux-Trembles.
The company has announced that it will support the affected employees. According to the announcement, this includes assistance with career transition and, if necessary, transfer opportunities to other locations. Severance payments will be made in accordance with company guidelines and applicable collective labour agreements.
„This was a difficult but necessary decision in order to adapt to market conditions and strengthen our long-term position. We remain committed to our employees, our locations in Canada and the reliable and high-quality supply of our customers.“
Laurent Sellier, President and CEO of Smurfit Westrock, North America Region
With the closure, Smurfit Westrock is reducing its production capacity for coated virgin fibre cartonboard in Canada. According to reports, this involves an annual capacity of 127,000 tonnes. According to the company, this is in response to changing market conditions and cost pressure in the segment.
Source: Smurfit Westrock
