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Kruger Products Advances with New Tissue Facility in Québec

Kruger Products Advances with New Tissue Facility in Québec

Kruger Products Invests in a New Tissue Production Facility

Kruger Products Inc., Canada's leading manufacturer of tissue products, has successfully completed the construction of a new plant located adjacent to the existing Sherbrooke TAD facility. The new double-width light dry crepe (LDC) tissue machine boasts an impressive capacity of 60,000 metric tons and represents a significant investment of $377.5 million. This strategic expansion aims to bolster the company's production capabilities and meet the growing demand for premium tissue products across North America.

Innovations Supporting Economic Growth

The construction of this state-of-the-art facility has been a collaborative endeavor, supported by the Government of Quebec through Investissement Québec, which contributed $165 million in loans. This investment highlights a commitment to modernizing the pulp and paper industry in Quebec while creating job opportunities. Christine Fréchette, the Minister of the Economy, Innovation and Energy, expressed pride in the project's potential to uplift the local economy by providing quality employment in the Estrie Region.

CEO's Vision for the Future

Dino Bianco, the CEO of Kruger Products, shared his excitement regarding the completion of the Sherbrooke LDC plant. He emphasized that this facility not only fulfills their vision of making Sherbrooke a significant manufacturing hub but also enhances the company’s brand presence across Canada. With the establishment of this new operation, they aim to distribute high-quality tissue products such as Cashmere UltraLuxe®, Scotties® Ultra Soft, and SpongeTowels Ultra Pro® to consumers in Canada and White Cloud® to those in the U.S.

Increased Production Capacity and Job Creation

Once fully operational, the Sherbrooke site is projected to produce over 130,000 metric tons of top-tier tissue products annually. The expansion is set to improve market share for Kruger Products, enabling the company to broaden its product lines and deliver greater value to its customers. The plant is also expected to generate approximately 141 new job opportunities, which is a positive development for the local workforce.

Upcoming Official Dedication Ceremony

Anticipation is building for an official dedication ceremony to recognize the completion of the plant. Details regarding this celebration are expected to be announced in the coming months, and it will mark a significant milestone for Kruger Products and its stakeholders.

About Kruger Products and KP Tissue Inc.

Kruger Products Inc. is renowned in Canada for manufacturing a wide range of tissue products tailored for both household and commercial use. With popular brands like Cashmere®, Purex®, and SpongeTowels®, they have solidified their position in the market. In addition to their Canadian operations, Kruger Products manufactures the White Cloud® brand in the U.S., catering to a diverse consumer base throughout North America.

Meanwhile, KP Tissue Inc. was established to manage a limited equity interest in Kruger Products, holding a 12.56% stake. This relationship allows KPT to benefit from the growth and profitability of Kruger Products, ensuring a robust financial foundation for both entities.

Frequently Asked Questions

What is the purpose of the new Kruger Products plant?

The new plant aims to enhance Kruger Products' production capabilities, particularly for high-quality tissue products, thereby helping to increase market share across North America.

How much was invested in the expansion project?

The expansion project involved an investment of $377.5 million, supported by a $165 million loan from the Government of Quebec.

What are some products produced at the Sherbrooke facility?

The plant will produce various tissue products including Cashmere UltraLuxe®, Scotties® Ultra Soft, and SpongeTowels Ultra Pro® for Canada, while also supplying White Cloud® to the U.S. market.

How many jobs will the new facility create?

The Sherbrooke LDC plant is expected to generate approximately 141 new job opportunities within the local community.

When is the official dedication ceremony planned?

The official dedication ceremony will take place in the spring, with exact details to be announced in the near future.

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