Kruger Products Doubles Production of Its Future Tissue Machine in Sherbrooke

Total investment is $351 million

SHERBROOKE, QC, Dec. 17, 2021 /CNW Telbec/ - Kruger Products today announced that it will double the size and production of its future LDC tissue machine in the Brompton borough of Sherbrooke. The machine is slated to be commissioned in 2024.

KRUGER PRODUCTS DOUBLES PRODUCTION OF ITS FUTURE TISSUE MACHINE IN SHERBROOKE (CNW Group/Kruger Inc.)

After revealing on February 26, 2021, a $240-million expansion project to install the machine and add two converting lines, the Company announced that it is increasing its investment by $111.5 million, for a total of $351.5 million. The double-wide machine, which features LDC (light dry crepe) technology, will be able to produce at least 60,000 metric tonnes of premium-quality tissue products annually for the Canadian and U.S. markets.

Kruger Products' new Sherbrooke tissue plant, which has led to the creation of 180 jobs, was successfully commissioned on time and on budget earlier this year, after close to one million hours of construction during the pandemic. When combined with the $600 million invested in this state-of-the-art plant and artificial intelligence, investment in the Brompton Borough totals nearly $1 billion and will result in the creation of 321 jobs in all. Kruger Products' production site in Sherbrooke will form a major premium-quality tissue-product manufacturing hub in North America.

"The additional production capacity will enable us to drive our Company's growth and continue to supply our customers across North America with high quality tissue products such as Cashmere®, SpongeTowels®, Scotties® and Purex® in Canada, and White Cloud® in the United States," explained Dino Bianco, CEO of Kruger Products.

Kruger Products' major expansion project will create 141 jobs over the next three years and bring significant benefits to the region:  $165 million in estimated direct spending and more than 660,000 construction person-hours.

Earlier this year, the Government of Québec, a partner in the project, provided a
$165-million loan through Investissement Québec. The additional investment of $111.5 million announced today, however, is entirely funded by Kruger Products and a bank syndicate.

"Quebec's pulp and paper industry needs to renew and modernize itself. Kruger Products' acquisition of this new machine is a great example of technological innovation, which will allow it to double its production capacity. It's the kind of initiative that will boost the industry's performance and growth," said Pierre Fitzgibbon, Minister of Economy and Innovation and Minister Responsible for Regional Economic Development.

Geneviève Hébert, MNA for Saint-François and Deputy Government Whip, emphasized the importance of quality jobs created by Kruger Products since 2018 and those to be added by 2024. "Brompton's industrial gem continues its expansion in the hyper efficient production of high-quality tissue products. The Company's investments in my riding are major and their spinoffs considerable for our region. Kruger has deep roots in our region and we are proud of its capacity for innovation which makes us shine."

About Kruger Products L.P. (KPLP)
KPLP is Canada's leading manufacturer of quality tissue products for household, industrial and commercial use. KPLP serves the Canadian consumer market with such well-known brands as Cashmere®, Purex®, SpongeTowels®, Scotties® and White Swan®. In the U.S., KPLP manufactures the White Cloud® brand, as well as many private label products. The Away-From-Home division manufactures and distributes high-quality, cost-effective product solutions to a wide range of commercial and public entities. KPLP has approximately 2,700 employees and operates nine FSC® COC-certified (FSC® C-104904) production facilities in North America.  For more information visit www.krugerproducts.ca.

About Kruger
Founded in 1904, Kruger Inc. is a major producer of tissue products; 100% recycled containerboard products; corrugated packaging; publication papers; specialty papers; renewable energy; cellulosic biomaterials; and wines and spirits. The Company is also a leader in paper and paperboard recycling in North America. Kruger Inc. has facilities in Québec, Ontario, British Columbia, and Newfoundland and Labrador, as well as in Tennessee, Maine, New York, Virginia, North Carolina and Rhode Island. (www.kruger.com).

SOURCE Kruger Inc.

Marie-Claude Tremblay, Manager, Communications, Kruger Inc., T. : 514 343-3100, #12010, [email protected]