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Kruger to cease coated paper production indefinitely at its Trois-Rivires mill

Kruger Inc. will cease the production of coated paper at its Trois-Rivières, Que., mill for an indefinite pe…

Kruger Inc. will cease the production of coated paper at its Trois-Rivières, Que., mill for an indefinite period, effective October 30, 2009. The company cites as reasons to the decreasing demand for coated paper, which dropped 35% in North America in 2009 over the previous year, as well as falling prices, and the appreciation of the Canadian dollar.

Three paper machines and two coaters will be shut down, as well as the woodroom and groundwood plants, resulting in approximately 400 layoffs. The Trois-Rivières mill will,

however, continue to produce newsprint and supercalendered paper, maintaining 550 jobs at the site.

This decision will result in a 35% reduction of Kruger’s annual coated paper production capacity. The company will maintain coated paper production at its Wayagamack mill.

Founded in 1904, Kruger Inc. is a major producer of publication papers, tissue, lumber and other wood products, corrugated cartons from recycled fibres, green and renewable energy, and wines and spirits.