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Kruger Makes Investment at Crabtree Facility

Lanaudière, Quebec, Canada 27 October 2016 -- Kruger Products L.P. announced it is investing $55 million to add a paper machine at its Crabtree facility, in the Lanaudière region. The project will increase the facility's overall production by approximately 20,000 metric tonnes annually and will help to consolidate approximately 600 jobs.

The investment was announced at a news conference at the Crabtree Plant attended by Dominique Anglade, Minister of Economy, Science and Innovation, and Minister responsible for the Digital Strategy; and by representatives from the Crabtree municipality and the Joliette Regional County Municipality; as well as Mario Gosselin, Chief Executive Officer, Kruger Products L.P.; and Joseph Kruger II, Chairman and Chief Executive Officer, Kruger Inc.

To make this investment, the Company received a $39.5-million loan from Investissement Québec, which is acting as an agent of the Government of Québec in this project.

"This major investment was largely made possible by the support of the Québec government and the Joliette Regional County Municipality, as well as by our Crabtree employees who rallied for their plant's future," said Mario Gosselin, Chief Executive Officer, Kruger Products L.P. "By granting a loan for this project, the Québec government is enabling Kruger Products to continue to grow in Québec and to continue to contribute to the Region's economic growth."

The No. 8 Paper Machine (PM8), which will produce tissue products primarily for the away-from-home market, will be installed in a new building that will soon be under construction. PM8 is expected to be commissioned by end of summer 2017.


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