Kruger Inc. A Kruger Inc. subsidiary

A major construction project in Trois-Rivières

November 3, 2016

Trois-Rivières, Québec, November 3, 2016 – The No. 10 Paper Machine (PM10) rebuild project is proceeding on time and on budget, as revealed by Kruger Inc. during a press briefing held this Thursday, November 3, 2016, at the Trois-Rivières Mill. The Company offered a behind-the-scenes look at the construction site of this the large-scale project that represents 500,000 person-hours of work over 20 months. Once the project is completed in May 2017, the Mill will start manufacturing 100% recycled lightweight and high-strength linerboard for which demand is increasing in North America and around the world.

Announced jointly by Kruger and the Government of Québec in September 2015, the project is already generating major benefits for the Mauricie region and for Québec, as it involves no less than 80 local businesses. Approximately $135 million of the overall $250-million budget has been committed to date, including $40 million for Trois-Rivières suppliers and $60 million for suppliers elsewhere in Québec.

Some 200 workers are currently completing the pulp mill, which will supply the new production line with recycled fibre, while the Company makes the most of each PM10 maintenance shutdown to work on the paper machine. During the project’s final phase, from February 26 to May 7, 2017, PM10 will cease all newsprint production and more than 350 workers will work in rotating shifts for 20 hours a day to complete the rebuild.

“We are very satisfied with the progress of work. Not only is the project on time and on budget, but it also boasts a very positive health and safety record, which is a testimony to the know-how and professionalism of everyone involved: employees, suppliers and partners alike,” said Daniel Archambault, Executive Vice President, Kruger.


State-of-the-art Technology, Product of the Future

Kruger has invested $250 million in the project to ensure optimal results, as PM10 will be completely rebuilt and as efficient as a new machine. Well before work got under way, Kruger’s engineers toured numerous manufacturing plants in North America and Europe to find the best technology for manufacturing 100% recycled lightweight and high-strength linerboard of the best possible quality.

Commercialized as XTR, the new linerboard grades to be manufactured at the Trois-Rivières Mill will meet increasing demand for ultra-light packaging without compromising strength, performance or the environmental footprint.

PM10’s annual production will total 360,000 metric tonnes of XTR linerboard, an exclusive product that Kruger Inc. will be the first to manufacture in North America. A portion of the production will be used by Kruger’s packaging plants in LaSalle, QC, and Brampton, ON, while the remainder will be sold to packaging manufacturers across Canada and the United States.


About Kruger Packaging L.P.

Kruger Packaging L.P. specializes in the manufacture of containerboard products and corrugated packaging solutions made from 100% recycled fibre. The Montréal-based company was created in partnership with Kruger Inc. and Investissement Québec, which has a 25% take in its assets. Kruger Packaging L.P. employs some 800 people, including more than 600 in Québec, and operates three production sites, namely the Place Turcot Containerboard Mill (Montréal, QC), and the LaSalle, QC, and Brampton, ON, packaging plants. In May 2015, the Company will start to manufacture 100% recycled lightweight and high-strength linerboard at a fourth site, the Kruger Trois-Rivières Mill.
[www.containerboard.kruger.com]


About Kruger

Founded in 1904, Kruger Inc. is a major producer of publication papers, tissue products, containerboard and packaging made from recycled fibres, renewable energy, cellulosic biomaterials, and wines and spirits. The Company is also a leader in paper and paperboard recycling in North America. Kruger Inc. has facilities in Québec, Ontario, British Columbia, and Newfoundland and Labrador, as well as in Tennessee, Maine, New York, Virginia and Rhode Island in the United States. [www.kruger.com]

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INFORMATION:

Jean Majeau
Senior Vice President, Corporate Affairs and Communications
Office: (514) 343-3213
jean.majeau@kruger.com