Kruger Considering Tissue Expansion in Quebec or Tennessee

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Kruger Inc., Montreal, Que., Canada, is reportedly planning a major expansion project, possibly at its Crabtree mill just northeast of Montreal. According to a report by the Monteal Gazette, the U.S. state of Tennessee is also ready to offer an incentive package for Kruger to install a new machine at its existing Memphis, Tenn., tissue products plant.

The provincial development agency Investissement Quebec is said to be talking with Kruger about financing of a new machine at the Crabtree mill. Analysts say the project could cost around $100 million, the Montreal Gazette reported. Both Crabtree, with 70,000 metric tpy of production capacity, and the Memphis mill, with 100,000 short tpy of capacity, make personal hygiene products. Crabtree employees some 700 people.

Kruger bought the Memphis tissue mill from a bankrupt U.S. company for $24 million in 2002 and announced a $42-million upgrade in 2005 as its U.S. market share rose. The mill's capacity was raised to 100,000 short tpy. Kruger also has a 40,000 metric tpy tissue mill at Lennoxville, Que., and an 89,000 metric tpy tissue mill in New Westminster, B.C., Canada.