TORONTO - Cascades Inc. says its packaging plant in Toronto will close in June, cutting 36 jobs, due to low demand for the product it makes there.

The Cascades Enviropac plant makes honeycomb packaging, which is used mainly to pack furniture.

"Demand in the honeycomb packaging industry has been affected by challenging economic conditions over the past few years and it is imperative we adjust our operations based on this new economic environment," Luc Langevin, president and chief operating officer of Cascades specialty products group, said in a statement on Wednesday.

Production will move to Cascades (TSX:CAS) plants in Berthierville, Que. and Grand Rapids, Mich., Langevin said.

"The decision to cease operations at the Toronto plant is due to a significant reduction in business volume. This decision was taken to secure the group's profitability and to improve its position as leader in the industrial packaging sector."

Cascades said it will help employees affected by this closure relocate to other manufacturing units and search for work.

The Quebec-based tissue and cardboard maker has sold assets and shut mills as part of an effort to reduce costs and debt.

Founded in 1964, Cascades produces, converts and markets packaging and tissue products composed mainly of recycled fibres.

It employs nearly 11,000 people in more than 100 operating units in North America and Europe.