Kruger invests $55 million in adding new paper machine at Quebec plant

MONTREAL (Scrap Monster): Canada’s leading tissue paper maker Kruger Products L.P. has announced investment of $55 million at its Crabtree plant in northeast of Montreal.

The investment will be towards adding a new paper machine at the plant, which in turn will scale up the production significantly. With the installation of the new No.8 Paper Machine (PM8), the overall production of the plant is expected to increase by nearly 20,000 metric tonnes per year. The company plans to commence the construction work of the building where the machine will be installed. The new paper machine is expected to be commissioned by end of 2017 summer. The investment is expected to secure approximately 600 jobs at the plant facility.

According to Mario Gosselin, the company’s CEO, the investment was made possible by a $39.5 million loan granted by Investissement Québec. He thanked the Québec government and the Joliette Regional County Municipality for their support. The investment will help Kruger to grow in Quebec and to contribute to the region’s economic growth in a better way, Gosselin added.

Recently, Kruger had announced that it has reached an agreement with ABB-a leading global technology company towards supply of complete engineered solution, as part of its $250 million investment to rebuild its No.10 Newsprint Machine at the Trois-Rivières Mill in Quebec. The investment is aimed at converting the No.10 newsprint machine (PM10) to manufacture 100% recycled linerboard.

In another recent development, the company had won the 2016 Walmart Vendor Sustainability Award. The award was in recognition for the company’s sustainability efforts and achievements. Selected from over 100 suppliers, the award also recognized the support provided to Walmart in attaining its own sustainability goals. It had also won the Consumer Acceptance Special in the Paper, Plastic and Foil Category of Canadian Grand Prix New Product Awards for its SpongeTowels Ultra Strong paper towel. Consumer Reports had ranked White Cloud Ultra Soft & Thick toilet paper- a specialty product made by Kruger for Walmart as the No.1 bathroom tissue, based on its strength, softness and cheap price.

As per estimates, Kruger Products recycles over 110,000 tonnes of paper every year, thereby preserving over 1.7 million trees. Since 2009, Kruger has reduced packaging material by 13.5%. The company has been successful in reducing its energy consumption in Canadian mills by 11.3% since 2009. Also, it has reduced green house gas (GHG) emissions by over 25.7% during this period. It has also reported 18.8% reduction in water consumption since 2009.

Kruger Products L.P. is Canada’s leading manufacturer of quality tissue products for household, industrial and commercial use. The company is a leading producer of high quality bathroom tissue, facial tissue, paper towel and napkin products. It mainly produces Cashmere- the most popular bathroom tissue brand in Canada; Purex- the #1 bathroom tissue brand in Western Canada; and Scotties- Canada's most preferred facial tissue brand. In addition, it also owns brands such as SpongeTowels, White Swan and White Cloud. Kruger Products L.P. has approximately 2,500 employees across North America and operates five certified mills, four of which are located in Canada and one in the US.