Kruger to invest $575 million in new tissue plant

Kruger is investing $575 million to build what it calls a "state-of-the-art tissue plant" in Sherbrooke, Québec.

The facility will produce approximately 70,000 metric tonnes of bathroom tissue and paper towels each year, enabling Kruger to "increase its offering of ultra premium and innovative tissue products under the Cashmere, SpongeTowels and Purex brands," according to a press release.



“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," said Dino Bianco, chief executive officer at Kruger Products.

Construction on the plant is slated to start next year. The company said the plant should be operational in early 2021 and that it would result in the creation of more than 180 jobs.

The Government of Québec is contributing $105 million to the project. The remaining financing is still being finalized.