December 17, 2021 By P&PC Staff
Kruger Products has announced that it is doubling the size and production of its future LDC (light dry crepe) tissue machine in the Brompton borough of Sherbrooke. The machine is scheduled to be commissioned in 2024.
On Feb. 26, the company had announced a $240-million expansion project to install the machine and add two converting lines. It is now increasing the investment by $111.5 million, for a total of $351.5 million.
The double-wide machine, which features LDC technology, will be able to produce at least 60,000 metric tonnes of premium-quality tissue products annually for the Canadian and U.S. markets.
The new Kruger Products Sherbrooke tissue plant was commissioned earlier this year. Creating 180 jobs, the plant was constructed during the pandemic. The company invested $600 million in this state-of-the-art plant and artificial intelligence, which is expected to create 321 jobs in total.
“The additional production capacity will enable us to drive our company’s growth and continue to supply our customers across North America with high-quality tissue products such as Cashmere, SpongeTowels, Scotties and Purex in Canada, and White Cloud in the United States,” explained Dino Bianco, CEO of Kruger Products.
Kruger Products’ major expansion project will create 141 jobs over the next three years and bring significant benefits to the region: $165 million in estimated direct spending and more than 660,000 construction person-hours.
Earlier this year, the Government of Québec, a partner in the project, provided a$165-million loan through Investissement Québec. The additional investment of $111.5 million is entirely funded by Kruger Products and a bank syndicate.
“Quebec’s pulp and paper industry needs to renew and modernize itself. Kruger Products’ acquisition of this new machine is a great example of technological innovation, which will allow it to double its production capacity. It’s the kind of initiative that will boost the industry’s performance and growth,” said Pierre Fitzgibbon, Minister of Economy and Innovation and Minister Responsible for Regional Economic Development.
Geneviève Hébert, MNA for Saint-François and Deputy Government Whip, emphasized the importance of quality jobs created by Kruger Products since 2018 and those to be added by 2024. “Brompton’s industrial gem continues its expansion in the hyper-efficient production of high-quality tissue products. The company’s investments in my riding are major and their spinoffs considerable for our region. Kruger has deep roots in our region and we are proud of its capacity for innovation which makes us shine.”
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