This major project, undertaken in partnership with the Government of Québec, will help maintain more than 500 jobs in the Mauricie and Estrie regions
As part of a CAD 377.6-million transaction to diversify operations at its Brompton and Wayagamack Mills into specialty niches, Kruger is investing CAD 4.8 million in its Biomass Cogeneration Plant adjacent to the Brompton Mill, according to Canadian Biomass.
Kruger and the Government of Québec have formed a partnership by which Investissement Québec, acting as the government's agent, will grant loans and a loan guarantee totalling CAD 59.8 million and acquire an equity participation of 37.5 percent, or CAD 44.6 million, in the new entity Kruger Specialty Papers Holding L.P.
To carry out this diversification project, Kruger Specialty Papers Holding will invest CAD 107.5 million over the next three years to enable the Brompton and Wayagamack Mills to gradually reduce the production of some publication paper products that are in decline, such as newsprint and magazine paper.
The project's other significant benefits include an additional 100,000 metric tons of wood chips procured annually, which will have a direct positive impact on Québec's sawmill sector.
The amounts invested will be used to acquire new production equipment, modify existing equipment, make technical improvements to boost productivity, and for various energy efficiency measures.
The new Kruger Specialty Papers entity will supply products that are in high demand due to changing market trends around the world, specifically increased demand for sustainable packaging and the growing popularity of e-commerce.
New specialty products include food packaging paper, labelling products (backing paper) and coated paper for digital inkjet web presses to print mass-circulation catalogues and flyers that can be customized for targeted mailings.
By the end of the project, the Brompton Mill will focus exclusively on specialty products and therefore will no longer manufacture 200,000 metric tons of newsprint annually.