Creation of 175 new jobs – Inauguration of the new coated paper machine at the Kruger Wayagamack Mill
September 30, 2004 By Pulp & Paper Canada
TROIS-RIVIERES -The Minister responsible for Transport and for the Mauricie Region, Mrs. Julie Boulet, who was repr…
TROIS-RIVIERES -The Minister responsible for Transport and for the Mauricie Region, Mrs. Julie Boulet, who was representing the Minister of Economic and Regional Development and Research, Mr. Michel Audet, the Chairman of the Board and Chief Executive Officer of Kruger Inc., Mr. Joseph Kruger II, the MNA for Trois-Rivires, Mr. Andr Gabias, and the Chairman and Chief Executive Officer of the Socit gnrale de financement (SGF), Mr. Henri A. Roy, presided over the official inauguration of the new, ultramodern coated paper machine at the Kruger Wayagamack mill on Wednesday, September 29.
The two partners, the Kruger (51%) and SGF (49%) invested a total of $500 million in a major modernization program involving the acquisition and installation of a brand new, ultramodern, high-performance coated paper machine, as well as the modernization of two existing paper machines that produce directory and supercalendered papers. The addition of this new machine increased the mill’s total production from 134,000 tonnes to 334,000 tonnes of paper annually.
“The financial participation of the Government of Qubec in such major modernization and expansion programs is vital to enabling Qubec companies to take a leadership role in both domestic and international markets by improving their response to the demand and often high expectations of various customer bases. Qubec needs dynamic and ambitious organizations like Kruger that contribute through their investments and job creation to Quebec’s economic development,” said Mrs. Boulet.
This major modernization program was implemented with financial input from Investment Qubec in the form of a direct loan totalling $148 million. The modernization of Kruger Wayagamack Inc. has created 175 new jobs, in addition to consolidating the mill’s existing 475 jobs. Globally, the project required more than one million hours of planning, engineering, construction and management, as well as 235,000 hours of professional training. More than 3,000 construction workers took part in the modernization program. “With its 650 employees and a total payroll of $40 million a year, the mill’s revitalization represents a very important contribution to the economic development of the Mauricie region,” said Mr. Gabias.
“The SGF targets projects where initiative, financial risk and operations management are assumed by a private sector partner. This mill is undoubtedly the result of a successful business partnership between the Socit gnrale de financement du Qubec and Kruger, which is recognized as a leader in the pulp and paper industry,” said SGF’s Chairman and Chief Executive Officer Mr.Henri A. Roy.
The project took three years to complete and 60% of the goods and services contracts were awarded to Qubec companies, including 25% to companies in the Mauricie. “Without the financial participation of the SGF and the excellent work of the people who were involved in the mill’s revitalization, this major project would never have taken place,” said Kruger’s Executive Vice President and Chief Operating Officer Mr. Bernard Routhier.
This is the only entirely new coated production unit to be installed in North America in the past 15 years, and its start-up was an unprecedented success in the industry. In addition to a complete range of coated products, Kruger Wayagamack Inc. manufactures directory and supercalendered grades.
Kruger is a major pulp and paper company engaged in the manufacturing and sale of newsprint, specialty grades, lightweight coated paper, directory paper, tissue, recycled linerboard, corrugated containers, lumber and wood products. Scott Paper Limited, a member of the Kruger Company, is the leading tissue manufacturer in Canada. Scott Paper serves the Canadian consumer market with well-known brands including Cashmere from Cottonelle, Purex, ScotTowels, Scotties, White Swan, Capri and Viva, as well as away from home products for industrial and commercial use across Canada. The Kruger Company has operations in Qubec, Ontario, Alberta, British Columbia and Newfoundland and Labrador, the United States, United Kingdom and employs over 10,500 people.
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