Kruger Products Begins Construction of its Tissue Plant in Sherbrooke

KP Tissue Inc. (TSX: KPT) and Kruger Products L.P. today dedicated the construction site of their future Sherbrooke tissue plant that will be equipped with Canada’s most advanced and best-performing TAD technology. The official ground breaking ceremony was held in the presence of Pierre Fitzgibbon, Québec Minister of Economy and Innovation; Geneviève Hébert, Member for Saint-François and Deputy Government Whip;Steve Lussier, Mayor of Sherbrooke; Nicole Bergeron, Chair of the City of Sherbrooke’s Executive Committee and Councillor for the Brompton Borough; Dino Bianco, Chief Executive Officer, Kruger Products; and Joseph Kruger II, Chairman and Chief Executive Officer, Kruger Inc.

Located in the borough of Brompton, the new plant will be constructed on a site adjacent to an existing Kruger paper mill, along the Saint-François River. This $575-million investment will create 180 jobs in Estrie, as well as some 1,700 direct and indirect jobs during the construction period that will end in 2021. In addition, a large number of local suppliers will be involved in this vast construction site that represents one million person-hours of work, which is equivalent to about 10% of person-hours worked annually in all of Québec’s industrial construction sector.

Kruger Products’ Sherbrooke Plant will include a through-air-dry (TAD) tissue machine, the world’s most advanced ultra-premium tissue manufacturing technology. TAD uses less fibre to obtain a bulkier, stronger ultra-premium product that is exceptionally soft and more absorbent. The Sherbrooke complex will also include converting lines.

Ultimately, the plant will manufacture approximately 70,000 metric tonnes a year of ultra-premium bathroom tissue and paper towels under the Cashmere®, SpongeTowels®and Purex®brands.