Kruger highlights $500 million diversification project
Kruger Inc. provided an update on the diversification and modernization of its paper mills in Quebec on Tuesday, which marked the eve of launching its new specialty products line at its Brompton plant. Since 2015, the company has invested more than $500 million in Quebec for the conversion of existing equipment, the purchase of new equipment, the modernization of facilities, and the diversification towards new and growing products like light packaging products for the food and retail sectors and labeling products. The company attributes these decisions for helping to protect more than 1,200 jobs in Mauricie, Estrie and Lanaudière.
Specialty papers
The diversification project, which was announced last September, includes the Brompton newsprint mill and the Wayagamack coated paper mill. The project includes investments totaling $107.5 million over three years to develop new markets for these two plants and offset the decline in traditional products such as newsprint and other publications.
As provided for in the Phase 1 schedule of the Diversification Project, Kruger will begin production of new products by the end of July at the Brompton plant and as early as December at the Wayagamack plant. This first phase includes the addition of several products to Kruger's existing line-up, including highly-glazed ‘supercalendered’ kraft paper and onesided coated paper for the manufacture of lightweight packaging and labeling products as well as food packaging paper. These sectors are looking for ecofriendly alternatives to reduce the use of plastic, which is one of the many benefits of Kruger specialty paper products that will be available to packaging manufacturers.
In recent years, Kruger has embarked on major changes for its paper mills in Quebec to counter the rapidly declining market for publication papers. This transformation began with the conversion of the famous No. 10 newsprint machine in Trois-rivières into a 100 per cent recycled light cardboard machine. This $250-million project, completed in the spring of 2017, revitalized the Troisrivières facility and helped protect some 270 jobs in the Mauricie region.
Renewal at the Brompton plant
The Brompton mill, which has been producing only newsprint to date, will be the first to benefit from the diversification project. The introduction of new products by the end of July will help protect some 200 jobs while allowing Kruger to cut 200,000 tonnes of its annual total newsprint production by the end of the project.
The Wayagamack plant, located in Trois-rivières, will maintain its coated paper production, but will start manufacturing new products in December.
Kruger has the advantage of being the only company in North America with a plant that produces cellulose filament, an eco-friendly reinforcing agent that produces lighter and stronger paper. This exclusive benefit will allow Kruger to offer manufacturers of packaging and labeling products a durable and highperformance alternative to the products currently available in the market.