Newfoundland, Canada 24 February 2014 -- The government of the Canadian province of Newfoundland and Labrador is making repayable contribution to Kruger's newsprint subsidiary Corner Brook Pulp and Paper to support sustainability and secure the future of the mill, according to Euwid Pulp and Paper.

A loan agreement for up to CAD110m and a power assets and water rights purchase agreement has been signed with Corner Brook Pulp and Paper Limited.

The purpose of the agreements is to support one of the largest private employers in the province, offering a total of 589 full-time jobs, of which 321 in the paper mill.

The mill runs two paper machines with an annual capacity of 250,000 t of newsprint.