A Canadian First: The new production line will manufacture a new generation of plastic-free, chemical-free materials

Kruger Inc. today announced a $333 million investment marking its entry into the nonwovens sector and advancing its long-term portfolio diversification strategy. This new division will focus on manufacturing some of the industry's most sustainable materials for a broad range of wipe applications. Central to this major project is the installation of the first production line of its kind in Canada, to be built on Île-de-la-Potherie in Trois-Rivières, adjacent to Kruger's Wayagamack paper mill, with commissioning scheduled for 2028.

The investment was announced during a press conference attended by the Honourable Mélanie Joly, Minister of Industry and Minister responsible for Canada Economic Development for Québec Regions; Bernard Drainville, Québec Minister of Economy, Innovation and Energy and Minister responsible for the Maritime Strategy; Jean Boulet, Québec Minister of Labour, Minister responsible for Canadian Relations and Member of the National Assembly for Trois‑Rivières; Caroline Desrochers, Member of Parliament for Trois‑Rivières; Jean‑François Aubin, Mayor of Trois‑Rivières; Simon Lavigne, Coordinator, Strategic Research and Development, Unifor; Gene Kruger and Sarah Kruger, Co‑Presidents of Kruger; Éric Ashby, Executive Vice President and Chief Operating Officer of Kruger; Mansoor Parvaiz, Senior Vice President and Chief Operating Officer, Kruger Nonwovens; and Jean‑François Cartier, General Manager of the future Kruger Nonwovens Île‑de‑la‑Potherie manufacturing site.

This project was made possible with the support of both levels of government, including a $35 million contribution from the Government of Canada through the Strategic Response Fund (SRF), as well as a $35 million loan from Investissement Québec, acting as financial agent for the Government of Québec, along with a $5,025,000 equity investment in Kruger Pulp and Paper Limited Partnership Holding. Investissement Québec is also investing an additional $25 million from its own funds.

Significant benefits for the Mauricie region

The project will result in the creation of 56 new permanent jobs, bringing total employment at the Île-de-la-Potherie site to over 340 employees, and close to 700 employees across Trois-Rivières, where Kruger will now count three manufacturing sites.

Over nearly two years, the construction work and equipment installation will require approximately 540,000 person-hours and generate significant economic benefits for the region, with direct spending estimated at more than $200 million and nearly 500 direct and indirect jobs created.

A hybrid technology unique in Canada

The new hybrid technology production line will be unique in Canada, combining wet-laid and dry-laid forming processes to develop ultra-high-performance, versatile nonwoven materials suitable for a broad portfolio of wipe applications. Manufactured without plastic fibres or chemical binders, these materials will help redefine standards in a market still largely dominated by products that contain plastic.

Key characteristics of the future materials

• Nonwoven materials made from 100% natural ingredients, including wood fibres sourced from responsibly managed forests, primarily from Canada
• Plastic-free and chemical-free
• Biodegradable and compostable
• Wet and dry strength, high absorbency, and added bulk for a more cloth-like feel, all exceeding current industry standards

Quote(s)

"This investment in Kruger Inc. is about protecting and creating good industrial jobs here at home while strengthening Canada's economic resiliency. By bolstering innovative, productivity-driven processes, we are helping Canadian companies compete and win in a rapidly evolving global economy."

-The Honourable Mélanie Joly, Minister of Industry and Minister responsible for Canada Economic Development for Québec Regions

"Kruger is a flagship company for both Quebec and the Mauricie region. With these investments, the company will be able to further diversify its activities while creating wealth and many quality jobs for local people. When we help our businesses stand out in new markets, we strengthen Quebec's assets and ensure its expertise shines around the world."

-Bernard Drainville, Minister of Economy, Innovation and Energy and Minister responsible for the Maritime Strategy

"As consumers increasingly favour environmentally responsible products, Kruger is well positioned, through this project, to stand out in the growing wipes market. In the Mauricie region, we are fortunate to count on many companies like Kruger that are ready to make strategic investments because they understand that their success is rooted in sustainable development and innovation. We are proud to support these initiatives, which are a source of pride for local communities and contribute to the vitality of our regional economy."

-Jean Boulet, Minister of Labour, Minister responsible for Canadian Relations and Member of the National Assembly for Trois‑Rivières

"With this major project, Kruger Wayagamack reaffirms its leadership in the forest products industry by investing in innovation and advanced technologies. This significant investment will enable the company to enter new markets while enhancing productivity and strengthening its competitive position. I am proud of the support provided by our government, which is helping businesses stay at the forefront, protect and create quality jobs in our regions, and in doing so, sustain the economic vitality of Mauricie, Québec and Canada."

-Caroline Desrochers, Member of Parliament for Trois‑Rivières

"We take great pride in seeing Kruger strengthen its presence in Trois-Rivières through such an innovative project, one that will deliver meaningful benefits for our economy. I commend the commitment of this company, which is deeply rooted in our community and continues to look ahead, invest, and play an active role in our region."

-Jean-François Aubin, Mayor of Trois-Rivières

"We have partnered with Kruger for many years in support of its growth and modernization initiatives, and we are proud to further diversify its activities and expand its domestic and export markets. To remain competitive, our businesses must not only focus on productivity, but also build on their strengths, as Kruger is doing here in Trois-Rivières, to drive innovation and diversification."

-Bicha Ngo, President and Chief Operating Officer, Investissement Québec

"We would like to highlight the support of the governments of Canada and Québec, along with Investissement Québec, which is key to advancing innovative projects like this one. The creation of our new division focused on 100% natural nonwoven materials is a direct extension of our long‑term diversification strategy. This project will allow us to build on our manufacturing expertise in a growing, innovative sector, while remaining true to our mission of developing more sustainable essential products."

-Éric Ashby, Executive Vice President and Chief Operating Officer, Kruger Inc.

About Kruger

Founded in Montréal in 1904, Kruger Inc. is a major provider of tissue products, 100% recycled containerboard, corrugated packaging, pulp and paper products and renewable energy. The Company is also a leader in paper and paperboard recycling in North America. A privately held family company, Kruger Inc. has 6,000 employees and its facilities are located in Québec, Ontario, British Columbia, and Newfoundland and Labrador, as well as in the States of Tennessee, Maine, New York, Virginia, Kentucky, and Rhode Island.