Canadian tissue products producer Kruger Inc. has announced a major investment in one of its production facilities. The company, which produces for private label companies, plans to double the size and production capacity of its future tissue machine in Sherbrooke, Quebec.
The investment is an $111.5 million increase from the $240 million figure that the company announced in February of 2021. The double-wide machine, which features LDC (light dry crepe) technology, will be able to produce at least 60,000 metric tons of premium-quality tissue products annually for the Canadian and U.S. markets. The machine is slated to be commissioned in 2024. In January of this year, Kruger announced it would expand production capacity at its plant in Memphis, Tenn. In related news, tissue giant Georgia-Pacific recently announced it will expand production and its mill in Green Bay, Wisc.
"The additional production capacity will enable us to drive our company's growth and continue to supply our customers across North America with high quality tissue products such as Cashmere, SpongeTowels, Scotties and Purex in Canada, and White Cloud in the United States," said Dino Bianco, CEO of Kruger Products.
Kruger Products' major expansion project will create 141 jobs over the next three years and bring “significant benefits” to the region, including $165 million in estimated direct spending and more than 660,000 construction hours.
"Quebec's pulp and paper industry needs to renew and modernize itself,” said Pierre Fitzgibbon, minister of economy and innovation and minister responsible for regional economic development. “Kruger Products' acquisition of this new machine is a great example of technological innovation, which will allow it to double its production capacity. It's the kind of initiative that will boost the industry's performance and growth."