ACQUISITION: KRUGER BUYS US TISSUE MILL
March 1, 1999 By Pulp & Paper Canada
MONTREAL, QC — Kruger Inc., one of the world’s leading tissue and pulp and paper makers, has acquired Shepherd Tissue Mill, Memphis, TN, with plans to expand the mill under the Global Tissue name. Pu…
MONTREAL, QC — Kruger Inc., one of the world’s leading tissue and pulp and paper makers, has acquired Shepherd Tissue Mill, Memphis, TN, with plans to expand the mill under the Global Tissue name. Purchase price and terms were not disclosed, but company officials said they plan to inject $40 million into upgrading the mill and improving the quality of the product. With the acquisition of Shepherd Tissue, Kruger’s tissue capacity will hit 500 000 t/y, which represents 50 million cases of finished goods.
Acquisition of the Memphis mill complements Kruger’s strategic expansion in the North American tissue market. Two years ago, the company purchased Scott Paper Ltd. of Canada, which is Canada’s largest manufacturer and supplier of tissue products. Scott Paper Ltd. will provide expertise to Global Tissue, according to company officials, including marketing, sales, technical innovation and new product development. “The mill has the capability to produce high-quality products and is perfectly located to serve both retail and commercial/industrial customers in the southeastern, central and mid-Atlantic states,” noted Joseph Kruger II, chairman and chief executive officer.
Dennis Stewart a former executive with Scott Paper Company in Philadelphia, PA, will be managing director of Global Tissue. Employees ratified a 10-year contract with the company last week, initiating what the company hopes will be an on-going partnership with the union, Stewart said.
Print this page