Cascades: Cost of Bear Island Conversion Project Has Increased
August 5, 2022
VIRGINIA (From news reports) -- Cascades Inc. said Thursday the cost of its Bear Island conversion project has increased amid higher labor costs and reduced availability of materials.
The Kingsey, Quebec paper company had anticipated the cost to convert the Ashland, Va., facility to produce 100%-recycled high-quality lightweight linerboard would be about $430 million.
On Thursday, the company said the cost had risen to 595 million to 615 million Canadian dollars ($463.3 million to $478.8 million).
Cascades President and Chief Executive Officer Mario Plourde said the company is working with contractors to mitigate potential delays in order to meet Bear Island's mid-December 2022 start date.
"It is important to note that the timing of some critical construction milestones may be at risk due to these issues and, as a result, the start-up of paper production may be delayed to the first quarter of 2023," Mr. Plourde said.