Kruger adding 119 jobs at Trenton plant with $52M expansion
TRENTON - Kruger Products is creating 119 new jobs at its Trenton manufacturing facility.
The company, with its corporate headquarters in Mississauga, is investing $52 million to install state-of-the-art equipment to set up eight new production lines. The project is expected to be completed by 2019, say company officials.
More than 180 jobs will be retained, boosting the plant’s workforce to more than 300. Kruger has about 2,500 employees across North America.
Northumberland-Quinte West MPP Lou Rinaldi made the announcement Wednesday morning.
The project is being touted as one of the largest economic development annoucements the Quinte region has seen in recent years, including construction of the massive McKesson Canada plant.
Kruger is Canada’s larger manufacturer of paper products, and distributor for wellknown household brands such as Cashmere, Sponge Towels and Scotties facial tissue.
Company CEO Mario Gosselin said the Trenton facility was purchased two years ago. The company, he said, had a game plan.
“We wanted to expand our manufacturing footprint in the away from home marketplace. It’s a very big segment of the market for us. This was the right location for us to continue to grow in Canada... to serve the GTA and northeast United States,” said Gosselin.
Gosselin said the new production lines will allow Kruger to manufacture a full line-up of its products for the North American marketplace.
Gosselin said Trenton provides the ideal location to supply that market.
“We’re growing in the U.S. Northeast. This plant can serve the growth efficiently,” he said.
Company officials have not ruled out adding a major warehouse facility to the existing 200,000 square-foot plant. But, they say, that investment won’t likely happen for another five years.
Quinte West mayor Jim Harrison said the expansion has been kept “under wraps” for two years.
“This is a real win for us. They are tripling their employee base. This is what we need here. This company has a great future. If they want to expand we are prepared to help,” said Harrison.
The city has purchased industrial property, just west of the Kruger plant.
“If they need it in the next four to five years it’s available. It’s all good news,” said Harrison.
The company will receive a $10 million loan through Ontario’s Jobs and Prosperity Fund, allowing Kruger to expand its ‘away from home market’ such as hotels, restaurants and hospitals, and boost its market share in the United States.
The project has been two-years in the making.
Rinaldi said “frankly they needed government support,” adding the investment is not corporate welfare.
“Kruger is a well established company. This is an ideal situation. The company is investing more than $50 million, and creating a lot of jobs. They are here for the duration. An employer this size has huge economic impact throughout the region. It’s a win-win,” said Rinaldi.
Future expansion, said Rinaldi, has come up in previous discussions.
“That was news to my ears. It gives me confidence that the province’s Jobs and Prosperity Fund of $2.7 billion is working,” he said.
Gosselin said discussions with the province and local officials in Quinte West, including the Quinte Economic Development Commission, proceeded smoothly.
“Everything was perfect. We got a lot of support from the entire Quinte area. Without that collaboration this project would never have happened. It made the company’s investment a lot easier,” said Gosselin.
Over the short term, said Gosselin, the company will be focusing on the investment before it starts planning future expansion of the Trenton facility.
“We’re talking the long term, but in the short term we need to focus on the investment that we have committed to and make it happen. If we are successful in ramping up production, we’re open to continue to grow this facility,” said Gosselin.
Gosselin says the company’s investment covers the next five years.
“We’ve already committed $20 million. Our game plan, though, is to make it happen as soon as possible,” he said.