Kruger Products Decided to Shutdown Old Assets at Memphis Plant

SEATTLE (Scrap Monster): KP Tissue Inc. and Kruger Products announced that it has decided to shut down certain older and inefficient production assets in Memphis, Tennessee. The decision is likely to impact around 165 employees at the Memphis plant.

The company press release noted that a Light Dry Crepe paper machine and six converting lines will cease operations in early January next year. Further to the shutdown, the Memphis plant will have a reduced production capacity of 85,000 metric tons. The production of high quality facial tissue and premium Through Air Dry (TAD) products will not be impacted, it said.

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The company expressed the hope that the shutdown of the older assets will significantly improve its operating efficiencies, thus delivering a positive impact on the profitability of the Memphis plant operations. Furthermore, the company committed to offer all possible support to the impacted employees during the transition.

Dino Bianco, CEO of Kruger Products acknowledged that it was a difficult decision to be taken, as it has invested more than $400 million at the Memphis plant since 2010. The plant will continue to be an important part of its business. Also, he extended sincere thanks to all employees for their ongoing dedication and hard work.