Kruger to invest $250 million to switch to cardboard

Kruger plans to make $250 million investment at its plant in Trois-Rivières, Quebec which will convert the No.10 newsprint machine to manufacture 100% recycled linerboard.

MONTREAL (Scrap Monster): Canadian paper producer, Kruger Packaging has announced plans to make an investment of $250 million at its plant in Trois-Rivières, Quebec. The investment aims to convert the No.10 newsprint machine (PM10) at the plant to manufacture 100% recycled linerboard. The sharp decline in newsprint sale has forced the company to switch products, reports say.

The new investment is supported by the Government of Quebec which will provide $190 million in financial support to the company. This includes $84 million loan and another $104 million through its investment agency, Investissement Québec. The new investment will combine Kruger’s containerboard and packaging operations. The Government of Quebec will have 25% ownership in the new company.

The modernization of the newsprint machine is expected to complete by 2017. Post conversion, the machine is expected to produce nearly 360,000 tonnes of linerboard per annum. The linerboards will be sold to Kruger packaging box plants in La Salle, QC and Brampton, ON and in open market.

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. The Company is also a leader in paper and paperboard recycling in North America. Kruger operates facilities in Quebec, Ontario, British Columbia, Newfoundland and Labrador and the United States.

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