Kruger Products investing $55 million on a new paper machine at its Crabtree plant

CRABTREE, QC, July 25, 2016 /CNW Telbec/ - Kruger Products L.P., Canada's leading manufacturer of quality tissue products for household, industrial and commercial use, today announced it is investing $55 million to add a paper machine at its Crabtree Plant, in the Lanaudière region. The project will increase the Plant's overall production by approximately 20,000 metric tonnes annually and will help to consolidate approximately 600 jobs.

The investment was announced at a news conference at the Crabtree Plant attended by Dominique Anglade, Minister of Economy, Science and Innovation, and Minister responsible for the Digital Strategy; and by representatives from the Crabtree municipality and the Joliette Regional County Municipality; as well as Mario Gosselin, Chief Executive Officer, Kruger Products L.P.; and Joseph Kruger II, Chairman and Chief Executive Officer, Kruger Inc.

To make this investment, the Company received a $39.5-million loan from Investissement Québec, which is acting as an agent of the Government of Québec in this project.

"This major investment was largely made possible by the support of the Québec government and the Joliette Regional County Municipality, as well as by our Crabtree employees who rallied for their plant's future," said Mario Gosselin, Chief Executive Officer, Kruger Products L.P.  "We would like to thank Minister Anglade for her support. By granting a loan for this project, the Québec government is enabling Kruger Products to continue to grow in Québec and to continue to contribute to the Region's economic growth."

The No. 8 Paper Machine (PM8), which will produce tissue products primarily for the away-from-home market, will be installed in a new building that will soon be under construction.  PM8 is expected to be commissioned by end of summer 2017.

About Kruger Products L.P.

Kruger Products L.P. 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 2,500 employees and operates seven production facilities in North America, including five FSC® CoC-certified plants (FSC® C104904), four of which are located in Canada and one in the US. For more information visit www.krugerproducts.ca. KP Tissue Inc. (TSX:KPT), which holds a limited partnership interest in Kruger Products L.P., was created to acquire, and its business is limited to holding, a limited partnership interest in KPLP. For more information visit www.kptissueinc.com.

SOURCE Kruger Inc.

Image with caption: "From left to right: Mr. Mario Gosselin, Chief Executive Officer, Kruger Products; Joseph Kruger II, Chairman of the Board and Chief Executive Officer, Kruger Inc.; Mrs. Dominique Anglade, Minister of Economy, Science and Innovation, and Minister responsible for the Digital Strategy; and Mr. Denis Laporte, Crabtree Mayor. (CNW Group/Kruger Inc.)". Image available at: http://photos.newswire.ca/images/download/20160725_C3101_PHOTO_EN_741289.jpg

For further information: Jean Majeau, Senior Vice President, Corporate Affairs and Communications, Kruger Inc., Tel.: [phone], [email protected]