09/05/2012 05:49 EDT | Updated 11/05/2012 05:12 EST

Cascades to lay off workers as it closes Lachute, Que. folding carton plant

KINGSEY FALLS, Que. - Cascades Inc. (TSX:CAS) says it will shutter its folding carton plant in Lachute, Que., laying off about 95 employees.

The company, which is in the midst of restructuring its operations, said Wednesday that the plant will close by the end of the first quarter of 2013.

Cascades says the plant has about 155 workers, and about 60 of them will have the option to move to another facility in the province.

As part of the announcement, Cascade said it has committed $22 million of investments into its Norampac division, which has locations near Montreal, Winnipeg, and Mississauga and Cobourg, Ont.

The money will go towards new equipment at the facilities that will boost production and efficiency, it said.

"The folding carton market in Canada continues to be key to our strategy in the packaging sector," said president and CEO Marc-Andre Depin in a release.

"Cascades occupies an enviable position in the folding carton market in Canada and these investments will allow us to consolidate and improve upon this position in the coming years."

Cascades has made numerous changes in recent months, including the consolidation of its corrugated products sector in Ontario, and the closure of a napkin plant in Toronto.