Kruger proposes $700 million investment in N.L. pulp and paper plant

Kruger is proposing a $700 million investment to modernize its operations in Corner Brook, N.L.

The proposed project, contingent on collaboration by industry partners, will see Corner Brook Pulp and Paper Ltd. transformed into a modernized and sustainable manufacturing complex.

Kruger said the facility would become “one of the most competitive in the industry,” while promoting the expansion of the province’s sawmill industry, providing energy and capacity for NL Hydro and sustaining jobs. 

The project will modernize the paper manufacturing operations, add a new pulp storage facility, upgrade site infrastructure, implement chip handling and receiving equipment and install a biomass unloading and drying system for the cogeneration facility.  

It also includes investments at the Deer Lake and Watsons Pond hydro facilities to maximize their capacity. 

The investments could bring about a potential expansion of the existing sawmills in the province, Kruger said.

The project also includes the construction of a private wind farm to support the operation of the modernized mill site.

Kruger said it recognizes the long-term potential of the site despite “persistent negative market conditions.” 

The company is asking for timely endorsement by all stakeholders, including Government of Newfoundland and Labrador, NL Hydro, First Nations, provincial sawmill partners, local municipalities, employees and union leadership

Kruger said it is in discussions with the Government of Newfoundland and Labrador regarding the plan.