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KP Tissue shutting down older production assets in Memphis facility

KP Tissue will shut down some of the older and inefficient production assets at its Memphis, Tennessee facility in early January, 2023. These include a Light Dry Crepe paper machine and six converting lines.

The Memphis plant will continue to produce the company’s high-quality facial tissue and premium Through Air Dry (TAD) products with the approximately 400 remaining employees.

KP Tissue noted in a press statement that the 165 employees impacted by this decision will receive severance and employment transition support. The Memphis plant is operated by Kruger Products’ subsidiary, K.T.G. (USA) Inc. and after the asset shutdown will have a production capacity of 85,000 metric tonnes.

“While this is a difficult decision, it is necessary to ensure the continued success, competitiveness and growth of our Memphis plant. We have invested over $400 million (USD) at our Memphis plant since 2010 and it will continue to be an important part of our business. We would like to sincerely thank our employees for their ongoing dedication and hard work,” said Dino Bianco, CEO of Kruger Products.

The shutdown of these older assets will improve the company’s operating efficiencies and have a positive impact on the profitability of its Memphis operations, states KP Tissue. Kruger Products will also be working closely with its customers to make this a seamless transition.