Kruger, a producer of tissue products, is set to commence the production of new specialty products at its Brompton mill in Québec.
Image: Kruger to start the production of new specialty products at its Brompton mill. Photo: courtesy of Kruger Inc.
Since 2015, Kruger has invested over $500m in its paper mills located in Québec to convert existing equipment, purchase new equipment, modernize some facilities and diversify into new growth products.
Kruger said the investment helped to protect more than 1,200 jobs in the Mauricie, Estrie and Lanaudière regions.
In September 2017, the company announced the diversification project focusing on Brompton newsprint Mill and Wayagamack coated paper mill.
The firm invested $107.5m over three years to develop new markets for both mills and offset the decrease in demand for traditional products such as newsprint and other publication papers.
The new niches consist of lightweight packaging products for the food and retail sectors, and labelling products.
For packaging manufacturers, Kruger specialty papers will serve as eco-friendly alternatives, enabling to reduce the use of plastic in various applications.
Under phase 1 of the diversification project, Kruger will start production of new products by the end of this month at Brompton Mill and by December at Wayagamack mill.
The first diversification phase will add Kruger with various products, including super-calendered kraft paper (SCK) and coated one side paper (C1S) for the manufacture of lightweight packaging and labelling products, and food packaging paper.
The Wayagamack mill will continue to produce coated paper, in addition to new manufacturing new products from December
Kruger said it implemented a bold strategy in recent years to diversify its Québec paper mills, as a result of rapid decline of the publication papers market.
As part of the strategy, the company initially converted the No. 10 newsprint machine in Trois-Rivières for the production of recycled lightweight and high-strength linerboard.
Kruger completed the $250m project in the spring of this year, helping to protect around 270 jobs in the Mauricie region.
The company also invested $67m to install new paper machine and converting line at its Crabtree (Joliette) plant. The project enabled to consolidate 640 jobs in the Lanaudière region.