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Kruger Packaging Upgrades Trois-Rivières, Quebec, Mill

09/14/2015
A leader in paper and paperboard recycling and major producer of publication papers, tissue products, containerboard and packaging made from recycled fibers, green and renewable energy and cellulosic biomaterials, Kruger Packaging L.P. will invest $250 million Canadian to convert the No. 10 Newsprint Machine at its Trois-Rivières Mill, in Quebec, to manufacture 100% recycled lightweight linerboard.

According to the firm, the modernization project will generate significant growth opportunities for the Trois-Rivières facility, contributing to secure operations and the 270 jobs at the Canadian mill. The project has received $190 million in support from the Québec government, which includes an $84-million loan to finance the cost of the conversion and a $106-million participation, through Investissement Québec, in a new company that now combines all of Kruger's Containerboard and Packaging activities.

As a result of this investment, the Québec government will have a 25% ownership in this new company which has assets in excess of $600 million, and more than 800 jobs, including 620 in Québec will be secured.

Over the coming 20 months, PM10 will be completely modernized to incorporate some of the most advanced containerboard manufacturing technology, company officials said. Once PM10 is up and running in 2017, it will produce 360,000 metric tonnes of 100% recycled lightweight linerboard annually, a portion of which will be sold to Kruger Packaging's box plants in LaSalle (Quebec) and Brampton (Ontario), while the remainder will be sold on the market.

The containerboard to be manufactured in Trois-Rivières is seeing huge growth in North America and around the world, as packaging manufacturers seek to produce increasingly lighter and stronger products, according to company officials.

The Trois-Rivières Mill will continue to produce newsprint on PM10 until two months before the end of the conversion project. Meanwhile, the Mill's other newsprint production line, PM7, will remain in operation into the future. Overall, Kruger's three newsprint production facilities will have an annual output of 600,000 metric tons, maintaining the company's ranking among North America's top newsprint manufacturers.

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