Kruger to invest $575M in new Quebec tissue plant

P&PC Staff
August 16, 2018
By P&PC Staff
August 16, 2018 - KP Tissue and Kruger Products have released a plan for a capital investment of $575 million to construct a new state-of-the-art tissue plant in the Brompton area of Sherbrooke, Quebec.

The project will establish more than 180 new jobs in the area and will feature Canada's largest and most modern through-air-dry (TAD) machine. TAD uses less fibre to achieve a softer and plusher product. While Kruger Products has been operating a TAD machine at its Memphis, Tennessee plant since 2013, its TAD 2 machine will be the first of its kind in Quebec.

The new plant will be situated near an existing facility of the Kruger Group and will produce at maturity approximately 70,000 metric tonnes per annum of bathroom tissue and paper towels for the Cashmere, SpongeTowels and Purex brands.

Construction of the project is expected to begin in early 2019, and the plant is slated to commence production in early 2021. The project will generate major benefits, including over $250 million in direct expenses in Quebec and one million person-hours for the construction of the new plant.

The project is supported by the Quebec provincial government through Investissement Québec, which has agreed to invest $105 million by way of a convertible debenture. The remaining financing for the project is currently being finalized.

"This project is on an unprecedented scale for Kruger Products and will give us the additional capacity to continue to grow our business into the future," said Dino Bianco, CEO of Kruger Products. "The Brompton site will also be part of a critical manufacturing hub in the region, working with our other locations in Crabtree, Gatineau and Sherbrooke to produce great quality tissue products for our company."

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