KINGSEY FALLS, Que. — Cascades Inc. is in talks to sell its Greenfield S.A.S. paper recycling mill in France, about five years after buying a half-interest in the plant and 3½ years after taking full ownership.
Cascades disclosed Monday that discussions are underway with Argowiggins, a subsidiary of Sequana Capital, a Paris-headquartered diversified paper group.
The 10-year-old Greenfield de-inking plant in Chateau-Thierry, east of Paris, has an annual capacity of 140,000 tonnes of high-end recycled pulp.
No financial details were released, but Cascades and Sequana said they hope to conclude an agreement by the beginning of 2008.
''The possible sale of Greenfield S.A.S. is in keeping with our strategic directions since there are few opportunities to integrate the production of this mill,'' stated Cascades CEO Alain Lemaire.
Cascades became sole owner in July 2004 when it paid an undisclosed amount to buy the half-interest held by Dalum Papir, a Danish maker of recycled paper which Argowiggins took over in July of this year.
Cascades and Dalum Papir had bought the mill out of bankruptcy proceedings in 2003. At that time the price was not made public, but Cascades indicated it was not material.
Greenfield became the first Cascades plant in Europe to manufacture market pulp from waste paper.