SHERBROOKE, Québec (News release) -- KP Tissue Inc. and Kruger Products Inc., Canada's leading tissue products manufacturer, are pleased to announce the completion of the construction of a new plant on a site adjacent to the existing Sherbrooke TAD facility and the successful start-up of their new double-width light dry crepe (LDC) tissue machine with a capacity of 60,000 metric tons. The $377.5 million expansion project also included the installation of two converting lines: a facial tissue line in the new Sherbrooke LDC plant, which started up in February 2024, and a bathroom tissue line in the existing Sherbrooke TAD plant, which started up in February 2023. The project was supported by Investissement Québec, agent for the Government of Quebec, who provided $165 million in loans.

"With this new Kruger Products plant, we have a fine example of technological innovation that is modernizing our Quebec pulp and paper industry. We are proud to have invested $165 million in this important project, which will improve the performance of a key sector of our economy, while creating quality jobs in the Estrie Region," said Christine Fréchette, Minister of the Economy, Innovation and Energy, and Minister responsible for Regional Economic Development.

"After years of hard work and dedication, the construction of our Sherbrooke LDC plant is now complete and fulfills our vision of making Sherbrooke a major hub for tissue product manufacturing. It also plays a key role in building our brands in Canada and expanding our business by offering premium-quality tissue products to customers across North America," said Dino Bianco, CEO of Kruger Products. "This is an incredible achievement for everyone involved. I would like to thank and congratulate the entire team who worked on this expansion project. Additionally, I would like to welcome the 141 new employees who have joined us!"

At maturity, the Sherbrooke site will be able to produce more than 130,000 metric tons of high-quality tissue products like Cashmere UltraLuxe®, Scotties® Ultra Soft and SpongeTowels Ultra Pro® for Canada and White Cloud® for the U.S. This additional capacity will allow Kruger Products to expand its product offering and grow its market share in North America.

Details of the official dedication ceremony, scheduled for next spring, will be announced at a later date.