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QC: Kruger Packaging to Invest $250M in the Trois-Rivières Mill

16 Sep, 2015


Kruger Packaging L.P announced an investment of $250 million to convert the No. 10 Newsprint Machine (PM10) at Kruger's Trois-Rivières Mill to manufacture 100 percent recycled lightweight linerboard. This major project, to be carried out with the support of the Government of Québec, was announced in the presence of Philippe Couillard, Premier of Québec; Laurent Lessard, Minister of Forests, Fauna and Parks; Jean-Denis Girard, Minister for Small and Medium Enterprises, Regulatory Streamlining and Regional Economic Development, Minister responsible for the Mauricie region and MNA for Trois-Rivières, and Joseph Kruger II, Chairman of the Board and Chief Executive Officer of Kruger Inc.

The modernization project will generate significant growth opportunities for the Trois-Rivières facility, contributing to secure operations and the 270 jobs at the mill. The project has received $190 million in support from the Québec government, which includes an $84 million loan to finance the cost of the conversion and a $106 million participation, through Investissement Québec, in a new company that now combines all of Kruger's Containerboard and Packaging activities. As a result of this investment, the Québec government will have a 25 percent ownership in this new company which has assets in excess of $600 million, and more than 800 jobs, including 620 in Québec will be secured.

State-of-the-art Technology

Over the coming 20 months, PM10 will be completely modernized to incorporate some of the most advanced containerboard manufacturing technology. Once PM10 is up and running in 2017, it will produce 360,000 metric tonnes of 100% recycled lightweight linerboard annually, a portion of which will be sold to Kruger Packaging's box plants in LaSalle (Quebec) and Brampton (Ontario), while the remainder will be sold on the market. The containerboard to be manufactured in Trois-Rivières is seeing huge growth in North America and around the world, as packaging manufacturers seek to produce increasingly lighter and stronger products.

Newsprint Production to Continue

The Trois-Rivières Mill will continue to produce newsprint on PM10 until two months before the end of the conversion project. Meanwhile, the Mill's other newsprint production line, PM7, will remain in operation into the future. Overall, Kruger's three newsprint production facilities will have an annual output of 600,000 metric tonnes, maintaining the company's ranking among North America'stop newsprint manufacturers.

About Kruger

Founded in 1904, Kruger Inc. is a major producer of publication papers, tissue products, containerboard and packaging made from recycled fibres, green and renewable energy, cellulosic biomaterials, and wines and spirits.  The Company is also a leader in paper and paperboard recycling in North America.  Kruger Inc. has facilities in Québec, OntarioBritish Columbia, and Newfoundland andLabrador, as well as in TennesseeMaineNew YorkVirginia and Rhode Island in the United States (www.kruger.com).

 

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