Supremex consolidates folding carton output in Lachine and cuts about 60 jobs on tariff costs
Supremex is consolidating folding carton production from Saint-Laurent, Quebec into its Lachine plant and cutting about 60 positions, some 6% of its workforce, under a restructuring plan targeting annualised savings of USD 4.0m (CAD 5.7m). The envelope and paper packaging maker separately puts the net annual tariff hit to operating earnings at USD 7.0m to USD 8.4m (CAD 10.0m to 12.0m), after mitigation measures taken so far. Full run-rate savings are expected in the first quarter of 2027, with a restructuring charge of about USD 1.3m (CAD 1.8m) to be booked in the fourth quarter of 2026.
Why this mattersTariff costs run at about twice the targeted savings, showing the squeeze on converters shipping envelopes and cartons across the US-Canada border.
- Folding carton production moves from the Saint-Laurent, Quebec commercial print site to the Lachine, Quebec flagship plant, cutting Saint-Laurent's floorspace
- Approximately 60 positions eliminated, about 6% of the workforce
- Annualised savings of USD 4.0m (CAD 5.7m), with benefits from Q4 2026 and full run-rate in Q1 2027
- Estimated net tariff impact of USD 7.0m to USD 8.4m (CAD 10.0m to 12.0m) a year on operating earnings before tax, after mitigation to date
- Restructuring charge of about USD 1.3m (CAD 1.8m) before taxes to be booked in Q4 2026, mostly severance
- Plan also pools Canadian and US envelope activities into centres of excellence and accelerates back-office technology deployment