Kruger announces start-up of TAD tissue plant in Sherbrooke
643 jobs created and retained in Québec as a result.
MONTRÉAL — Kruger Inc. made a number of announcements on Feb. 26: 1) Its Kruger Products subsidiary is announcing a $240M project to expand its operations in the Sherbrooke region which will become a major hub for the production of tissue products in Québec; 2) Its Specialty Papers division will receive financial contributions totaling $146.1M; and 3) Kruger Products completed the start-up of its manufacturing facility in the Brompton borough of Sherbrooke, featuring a (TAD) tissue machine after investments of $575M.
Together, these investments and financial contributions total $961.1M and will lead to the creation and retention of 376 jobs in the Sherbrooke region, as well as protect 267 jobs related to the Kruger Wayagamack plant in Trois-Rivières, Québec.
The new investments and financial contributions totalling $386M were financed in part by the Government of Québec through Investissement Québec which is: 1) providing $165M in loans; and 2) contributing, as a partner, $34.8M in the recapitalization of Kruger Specialty Papers L.P.
“Our investment at Kruger will enable the Company to modernize and strategically reposition the Brompton Plant. 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,” said Mr. Pierre Fitzgibbon, Québec Minister of Economy and Innovation.
$240M expansion project
Kruger Products announced on Feb. 26 its plan to expand its operations in the Brompton borough by adding an LDC tissue machine and two converting lines to be built and commissioned over the next three years. LDC, which stands for light dry crepe, is one of the most widely used tissue making technologies in the world.
In addition to creating 169 jobs, including 141 at Kruger Products, the expansion project will bring direct spending estimated at $110M and close to 410,000 person-hours of work for the construction.
Kruger Specialty Papers: $146.1M in financial contributions
Kruger Specialty Papers will receive a financial contribution of $88.1M from its partners to maintain its assets through the pandemic crisis. A portion of the funds will cover operating costs linked to the restart of the Brompton cogeneration plant, including the recall of 27 employees, while the remainder will be used to maintain the 267 jobs at the Wayagamack facility in Trois-Rivières, Québec, and ensure its sustainability.
TAD tissue plant start-up complete
Kruger Products also announced the successful start-up of its Sherbrooke manufacturing facility. The Sherbrooke facility comprises three converting lines which have been successfully commissioned.
At maturity, the TAD tissue machine will increase the annual output by 70,000 metric tonnes of bathroom tissue and paper towels for the Canadian and American markets.