Kruger Inc. Starts Up New Paper Machine at its Crabtree Facility

MONTREAL (Scrap Monster): Kruger Products, a subsidiary of Kruger Inc. has announced that the newly installed paper machine at its Crabtree Mill in Lanaudière region, northeast of Montreal, Quebec is up and running. The company press release stated that the new Paper Machine No.8 (PM No.8) has started up. The investment included installation of paper machine and purchase of a new winder.

Mario Gosselin, CEO of Kruger Products L.P. congratulated the entire team for taking up the challenge to complete such a large-scale project within the tight timeline. Terming the stat-up as a big success, Gosselin also highlighted the importance given to health and safety all through the construction phase.

Kruger had announced the abovementioned major investment plan in July last year. The proposed investment comprised of $55 million towards purchase and installation of a new paper machine and an additional $12 million investment towards acquiring new winder. It was announced that the new paper machine would be commissioned before end of summer in 2017.

The investment project had received significant support from the Government of Quebec. A loan of $39.5 million was granted by Investissement Québec, who acted as an agent for the Government. It had also received financial assistance from the Joliette Regional County Municipality and the Municipality of Crabtree through Territories Development Fund. Gosselin acknowledged that the extensive expansion was made possible mainly due to the constant support of government authorities and various agencies.

The commissioning of the No.8 Paper Machine is expected to boost annual production capacity of Crabtree facility by approximately 29%, thereby contributing to the region’s economy in a big way. Furthermore, the investment has also resulted in securing of nearly 600 jobs at the mill facility. PM8 will manufacture 30,000 metric tonnes of paper products every year, which will cater the demand from the away-from-home market segments.

Kruger had recently declared plans to invest $107.5 million over the next three years at its various Quebec mills. Out of this, $47.5 million will be distributed to Brompton mill and $32.9 million to Wayagamack Mill. The Trois-Rivières Mill will receive an investment of $22.3 million, whereas $4.8 million investment will be earmarked to Biomass Cogeneration Plant, Kruger press release noted.

Kruger Products L.P. is a leading manufacturer of quality tissue products for household, industrial and commercial use. The Crabtree facility manufactures and converts tissue paper into consumer and away-from-home products, which are distributed primarily throughout Eastern Canada. The plant has an annual capacity to produce 72,000 metric tonnes of tissue products every year.