Kruger Starts up New TAD Tissue Machine at Memphis

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KP Tissue Inc. (KPT), Montreal, Que., Canada, which owns approximately 16.9% in Kruger Products L.P. (KPLP), announced that KPLP has successfully finished the construction phase of its TAD (Through-Air-Dried) tissue project at its Memphis, Tenn., mill. KPLP began construction of the new TAD machine and related infrastructure in the fall of 2011 at an estimated cost of $322 million.

When fully optimized, the new TAD tissue machine is expected to increase the company’s production capacity by approximately 20%, or 60,000 metric tpy.

"We are especially pleased to have completed this phase of the project on time and on budget. The startup phase has commenced and we are already shipping products to our customers. The TAD project is a key component of KPLP’s North American growth strategy," said Mario Gosselin, CEO of KPLP and KPT.

KP Tissue Inc. was created to acquire, and its business is limited to holding, a limited partnership interest in KPLP. It currently holds a 16.9% interest in KPLP.