Kruger and the Government of Québec 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%, or CAD 44.6 million, in the new entity Kruger Specialty Papers Holding L.P. Accordign to the announcement, the new entity comprises the assets of the Brompton and Wayagamack Mills, as well as the Biomass Cogeneration Plant adjacent to the Brompton Mill.
To carry out this diversification project, Kruger Specialty Papers Holding L.P. 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, while accessing new markets that are on the rise around the world.
Investments will be distributed as follows:
- Wayagamack Mill: CAD 32.9 million;
- Brompton Mill: CAD 47.5 million;
- Trois-Rivières Mill: CAD 22.3 million; and
- Biomass Cogeneration Plant (Brompton): CAD 4.8 million.
Earlier Kruger Products provided an update on the new No. 8 Paper Machine (PM8) Project at its Crabtree Plant
The company is a major producer of publication papers, tissue products, containerboard and packaging made from recycled fibres, green and renewable energy, cellulosic biomaterials, and wines and spirits. It 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 U.S.