Newtown Company To Shutter, Lay Off All Workers

NEWTOWN, CT — A packaging facility employing over 70 workers in Newtown is shutting down.

Cascades Containerboard Packaging – Newtown, at 1 Edmond Road, will be shuttering at the end of April, according to a letter filed Feb. 13 with the Connecticut Department of Labor by parent Cascades Holding U.S. Inc.

The letter from Mathieu Cote, a Human Resources director with the firm, said the company had notified employees the layoffs would be progressive, between April 12 and April 26.

Cote notes that a collective bargaining agreement may provide senior employees an opportunity to keep their jobs longer than more junior workers, but not past the 26th of April.

At that time, "all employees at this facility who do not otherwise secure employment with Cascades will be separated as the entire facility will be closed," according to the letter.

The company told the state that Cascades is providing employees with support options such as outplacement services and workshops on job search and interviews. Retention allowances will also be made available to workers, subject to eligibility requirements after the conclusion of their employment, according to Cote.

Some workers being let go are members of the United Steel Workers union, and Cote provided DoL with the contact information for union officials.

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Cascades is the largest producer of egg trays in Canada and the U.S., and the largest maker of honeycomb cartons in North America, according to its website. The company currently employs nearly 10,000 workers in just under 75 facilities across North America.

In its 2023 third quarter financial report to investors, the company showed adjusted earnings before interest, taxes, depreciation and amortization of $161 million, compared with $141 million in Q2 2023 and $111 million in Q3 2022.

Cascade's president and CEO Mario Plourde warned investors that "we are forecasting fourth quarter results to decrease sequentially. This is driven by lower expected results in our Containerboard segment due to higher raw material costs, slightly lower average selling prices and usual softer seasonal volumes in the fourth quarter."

The company is set to release its Q4 numbers on Feb. 22.