TROIS-RIVIÈRES, Que—Kruger Packaging LP has announced it will invest $250 million to convert a newsprint machine to manufacture 100 per cent recycled, lightweight linerboard. The company said the project will be carried out with the support of the Quebec government and will generate significant growth opportunities for the Trois-Rivières facility.
“Over the coming 20 months, [No. 10 Newsprint Machine] will be completely modernized to incorporate some of the most advanced containerboard manufacturing technology,” the company said.
Kruger said the project will contribute to secure operations and the 270 jobs at the mill.
The Quebec government’s $190 million contribution to the project consists of an $84 million loan to finance the cost of the conversion, as well as a $106 million investment from Investissement Québec in a new company in which the Quebec government will have a 25 per cent ownership stake. Kruger noted the new company will combine all of its activities, holding assets in excess of $600 million and employ 800 people, including 620 in Quebec.
The revamped press is expected to be up and running in 2017, and be capable of producing 360,000 metric tonnes of 100 per cent recycled lightweight linerboard annually. The company said a portion of the product will be sold to Kruger Packaging’s box plants in LaSalle, Que. and Brampton Ont., while the rest will be sold on the market.
The Trois-Rivières Mill will be able to continue producing newsprint on PM10 until two months before the end of the conversion project, while the mill’s other newsprint production line will continue to operate regularly in the future.