Kruger Products announced it will double the size and production of its future LDC tissue machine in the Brompton borough of Sherbrooke, Que., as the machine is slated to be commissioned in 2024.
The $240-million expansion project announced back in February to install the machine and add two converting lines, increased the company’s investment by $111.5 million, for a total of $351.5 million. The double-wide machine, which features LDC (light dry crepe) technology, will be able to produce at least 60,000 metric tonnes of tissue products annually for the Canadian and U.S. markets.
“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.
When combined with the $600 million invested in this plant and artificial intelligence, investment in the Brompton Borough totals nearly $1 billion and will result in the creation of 321 jobs in all.
Earlier this year, the Government of Québec, a partner in the project, provided a $165-million loan through Investissement Québec. The additional investment of $111.5 million announced on Dec. 17, however, is entirely funded by Kruger Products and a bank syndicate.
“Quebec’s pulp and paper industry needs to renew and modernize itself. 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,” said Pierre Fitzgibbon, Minister of Economy and Innovation and Minister Responsible for Regional Economic Development.
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