Kruger Investing $316 Million for New Tissue Machine at Memphis Mill

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Kruger, Montreal, Que., Canada, reports that its Kruger Products L.P. subsidiary will continue to expand in the North American tissue market by installing a new tissue machine and supporting facilities at its Memphis, Tenn., USA, mill. The $316 million investment will increase the company’s production capacity by 18%, or 60,000 metric tpy of additional products to be distributed for the most part in U.S. markets. The expansion project is an integral part of Kruger’s long term strategic development plan.

"The proximity of our Memphis Mill to growing U.S. markets will further strengthen our competitive position in North America, which will benefit all our establishments in both Canada and the U.S.," said Mario Gosselin, COO for Kruger Products L.P. Since Kruger Co. acquired its tissue mills in 1997, it has made investments of more than C$450 million in its four Canadian mills, including C$230 million to modernize its Crabtree (Quebec) facility.

The investment announced this past week will not only help consolidate this position, but will give Kruger Products the latitude it needs to develop its activities at the North American level. The project, which involves a new tissue machine and a state‐of‐the‐art facility to accommodate this new asset, is partly financed by a $211 million loan from the Caisse de dépôt et placement du Québec, a Canadian institutional fund manager. Kruger Products L.P., a subsidiary of Kruger Inc., has 2,500 employees and operates five mills, four of which are located in Canada and one in the U.S.