Kruger announces expansion project, financial contributions, and start of TAD

Kruger Inc. has made a number of recent announcements to its operations.

Its Kruger Products subsidiary announced a $240-million project to expand its operations in the Sherbrooke region, which will become a major hub for the production of tissue products in Québec.

Kruger Products also established a state-of-the-art manufacturing facility in the Brompton borough of Sherbrooke, featuring a through-air-dry (TAD) tissue machine, after investments of $575 million.

Its Specialty Papers division will receive financial contributions totalling $146.1 million.

The investments and financial contributions total $961.1 million and will create 376 jobs in the Sherbrooke region, and protect 267 jobs related to the Kruger Wayagamack plant in Trois-Rivières, Qué.

The new investments and financial contributions totalling $386 million were financed in part by the Government of Québec through Investissement Québec, which will provide $165 million in loans, and contribute $34.8 million in the recapitalization of Kruger Specialty Papers L.P. as a partner.

“Our investment at Kruger will enable the Company to modernize and strategically reposition the Brompton Plant,” said Pierre Fitzgibbon, Québec Minister, Economy and Innovation. “The manufacturing complex will now focus on the fast-growing tissue product market. Part of our pulp and paper sector needs to modernize and renew its infrastructure throughout our regions. We need more projects such as this one to revitalize our pulp and paper industry and to continue fostering economic development in Québec.”