KP Tissue and Kruger Products LP plan to build a new $575 million tissue plant in Sherbrooke, QC.
The new plant, which will be adjacent to an existing facility of the Kruger Group, will produce at maturity approximately 70,000 metric tonnes per annum of bathroom tissue and paper towels which will enable Kruger Products to increase its offering of ultra premium and innovative tissue products under the Cashmere, SpongeTowels and Purex brands.
“This project is on an unprecedented scale for Kruger Products and will give us the additional capacity to continue to grow our business into the future," says Dino Bianco, CEO, Kruger Products. "This new facility combined with our Memphis TAD location will allow us to rebalance our ultra premium tissue capacity to better serve our customers across North America. The Brompton site will also be part of a critical manufacturing hub in the region, working with our other locations in Crabtree, Gatineau and Sherbrooke to produce great quality tissue products for our company.”
The project is supported by the Government of Québec through Investissement Québec (“IQ”), which has agreed to invest $105 million by way of a convertible debenture. The remaining financing for the project is currently being finalized.
The project will create more than 180 new jobs in the region.