A 25% increase in facial tissue production at
the Richelieu Plant in Gatineau
GATINEAU, QC, March 5,
2024 /CNW/ - Kruger Products Inc., a company in which
KP Tissue Inc. (TSX: KPT) has a limited interest, today announced a
major increase in its production of Scotties® facial tissues at its
Richelieu Plant in Gatineau,
Québec. The announcement was made in the presence of
Christopher Skeete, Québec
Minister for the Economy; Suzanne
Tremblay, the Member of the National Assembly for
Hull, and Michel
Manseau, Senior Vice President and General Manager,
Consumer Products – Canada, Kruger
Products.
Through this expansion project, which received investments
totalling $14.5 million and created
16 jobs, Kruger Products commissioned a new facial tissue
converting line at its Richelieu Plant in November 2023. The additional equipment will
increase the production of facial tissue by 25%.
Another component of the project will be rolled out at the
Laurier Plant, also in Gatineau,
where new equipment will collect tissue production residues. With a
view to the circular economy, the residues will be repulped for the
manufacture of value-added projects. This component, which is
expected to be completed in June
2025, will also enable the Laurier and Richelieu Plants to increase their
productivity.
Investissement Québec provided support for the project in the
form of a $7.27-million loan granted
under the ESSOR program.
"I congratulate everyone who contributed to the installation
of our new converting line at the Richelieu Plant, on time and on
budget. Ultimately, our recent investments and our new converting
line in Gatineau will allow us to
increase our facial tissue capacity by 2.2 million cases annually
by providing high quality products and diverse capability to
respond to the increase in demand observed in the North American
market."
- Michel Manseau, Senior Vice
President and General Manager, Consumer Products – Canada, Kruger Products
"This investment will help Kruger Products to produce more in
Québec, and that's what makes me particularly proud. When we
support our companies in their modernization and expansion, we
strengthen Québec's assets and ensure that we are always more
competitive."
- Christopher Skeete, Québec
Minister for the Economy, Minister Responsible for the Fight
Against Racism and Minister Responsible for the Laval Region
"We support companies so that they can not only become more
efficient, but also reduce their environmental footprint. This
project will enable Kruger Products to make better use of its
resources, with a view to increasing productivity and the circular
economy."
- Suzanne Tremblay, Member of the
National Assembly of Québec for Hull
Since 2018, Kruger Products has invested more than $1 billion in state-of-the-art manufacturing
facilities to meet consumer needs. The new converting line in
Gatineau consolidates our
Richelieu Plant as a centre of excellence in facial tissue
manufacturing and is part of a broader objective to expand the
Company's activities in North
America.
As a leader in the facial tissue category, Kruger Products has
ten plants in North America with
significant capacity to supply facial tissue to the market under
the Scotties® and Bonterra™ brands in Canada and White Cloud® in the United States.
About KP Tissue Inc. (KPT)
KPT was created to acquire,
and its business is limited to holding, a limited equity interest
in Kruger Products, which is accounted for as an investment on the
equity basis. KPT currently holds a 12.9 % interest in Kruger
Products. For more information visit www.kptissueinc.com.
About Kruger Products
Kruger Products is Canada's leading manufacturer of quality
tissue products for household, industrial and commercial use.
Kruger Products serves the Canadian consumer market with such
well-known brands as Cashmere®, Purex®, SpongeTowels®, Scotties®,
White Swan® and Bonterra™. In the U.S., Kruger Products
manufactures the White Cloud® brand, as well as many private label
products. Kruger Products has approximately 2,800 employees and
operates ten FSC® COC-certified (FSC® C-104904) production
facilities in North America. For
more information visit www.krugerproducts.ca.
Forward Looking Statements
Forward-looking statements
in this press release include, but are not limited to, statements
regarding the projected increase in production capabilities of the
Richelieu Plant, increases in facial tissue case output and market
demand for facial tissue products. The forward-looking
statements are based on certain key expectations and assumptions
made by KPT or Kruger Products. Although KPT and Kruger Products
believe that the expectations and assumptions on which such
forward-looking information is based are reasonable, undue reliance
should not be placed on the forward-looking statements since no
assurance can be given that such expectations and assumptions will
prove to be correct.
Many factors could cause Kruger Products' actual results, level
of activity, performance or achievements or future events or
developments (which could in turn affect the economic benefits
derived from KPT's economic interest in Kruger Products), to differ
materially from those expressed or implied by the forward-looking
statements, including, without limitation, those factors which are
discussed in the "Risk Factors – Risks Related to Kruger Products'
Business" section of the KPT Annual Information Form dated
March 9, 2023, available on SEDAR+
at www.sedarplus.ca.
The forward-looking information contained herein is made as of
the date of this press release and KPT undertakes no obligation to
publicly update such forward-looking information to reflect new
information, subsequent or otherwise, unless required by applicable
securities laws.
SOURCE Kruger Products