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11/14/2022

KP Tissue To Streamline Memphis Production Facility

The company said the decision was made to ensure the continued success of its operations in Tennessee.
Greg Sleter
Associate Publisher/Executive Editor
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KP Tissue

KP Tissue Inc. and Kruger Products will shut down certain older and inefficient production assets including a Light Dry Crepe paper machine and six converting lines. The closure impacts a production facility in Memphis, Tenn., and will happen in early January, 2023. 

High quality facial tissue and premium Through Air Dry (“TAD”) products will continue to be produced at its Memphis plant by approximately 400 remaining employees. The 165 employees impacted by this decision will receive severance and employment transition support. The Memphis plant is operated by Kruger Products’ subsidiary, K.T.G. (USA) Inc. and after the asset shutdown will have a production capacity of 85,000 Metric Tonnes.

“While this is a difficult decision, it is necessary to ensure the continued success, competitiveness, and growth of our Memphis plant,” said Dino Bianco, CEO of Kruger Products. “We have invested more than $400 million at our Memphis plant since 2010 and it will continue to be an important part of our business.”

The shutdown of these older assets will improve the company’s operating efficiencies and have a positive impact on the profitability of our Memphis operations, company officials said. Kruger Products will also be working closely with our customers to make this a seamless transition.