SHERBROOKE QC, May 13, 2019 /CNW Telbec/ - KP Tissue Inc.
(TSX: KPT) and Kruger Products L.P. today dedicated the
construction site of their future Sherbrooke tissue plant that will be equipped
with Canada's most advanced and
best-performing TAD technology. The official ground breaking
ceremony was held in the presence of Pierre Fitzgibbon, Québec Minister of
Economy and Innovation; Geneviève Hébert, Member for
Saint-François and Deputy Government Whip; Steve Lussier, Mayor of Sherbrooke; Nicole
Bergeron, Chair of the City of
Sherbrooke's Executive Committee and Councillor for the
Brompton Borough; Dino
Bianco, Chief Executive Officer, Kruger Products; and
Joseph Kruger II, Chairman
and Chief Executive Officer, Kruger Inc.
Located in the borough of Brompton, the new plant will be
constructed on a site adjacent to an existing Kruger paper mill,
along the Saint-François River. This $575-million investment will create 180 jobs in
Estrie, as well as some 1,700 direct and indirect jobs during the
construction period that will end in 2021. In addition, a large
number of local suppliers will be involved in this vast
construction site that represents one million person-hours of work,
which is equivalent to about 10% of person-hours worked annually in
all of Québec's industrial construction sector.
Kruger Products' Sherbrooke Plant will include a through-air-dry
(TAD) tissue machine, the world's most advanced ultra-premium
tissue manufacturing technology. TAD uses less fibre to obtain a
bulkier, stronger ultra-premium product that is exceptionally soft
and more absorbent. The Sherbrooke
complex will also include converting lines.
Ultimately, the plant will manufacture approximately 70,000
metric tonnes a year of ultra-premium bathroom tissue and paper
towels under the Cashmere®, SpongeTowels® and
Purex® brands.
"We are very proud to strengthen Kruger Products' presence in
Québec with this large-scale project that will provide significant
benefits to the Estrie region. What's even more exciting is that
the local know-how will shine across North America with products distributed
throughout Canada and in
the United States," said
Dino Bianco, Chief Operating Officer
of Kruger Products.
Forward-Looking Statements
Certain statements in this press release about KPLP's current
and future plans, expectations and intentions, results, levels of
activity, performance, goals or achievements or any other future
events or developments constitute forward-looking statements.
Forward-looking statements in this press release include, but are
not limited to, items such as: the undertaking of the project; the
timing of commencement and commissioning of the project; the
capacity of the TAD machine, the creation of new jobs; and KPLP's
future business strategy. The words "may", "will", "would",
"should", "could", "expects", "plans", "intends", "trends",
"indications", "anticipates", "believes", "estimates", "predicts",
"likely" or "potential" or the negative or other variations of
these words or other comparable words or phrases, are intended to
identify forward-looking statements. The forward-looking statements
are based on certain key expectations and assumptions made by KPLP,
including, but not limited to, expectations and assumptions
concerning the satisfaction of conditions to Investissement
Quebec's underwriting of the debenture and KPLP's ability to secure
sources for the remaining construction debt financing on acceptable
terms. Although KPLP believes that the expectations and assumptions
on which such forward-looking information is based are reasonable,
undue reliance should not be placed on the forward-looking
statements since no assurance can be given that such expectations
and assumptions will prove to be correct.
Many factors could cause KPLP's actual results, level of
activity, performance or achievements or future events or
developments to differ materially from those expressed or implied
by the forward-looking statements, including, without limitation,
the following factors, which are discussed in greater detail in the
"Risk Factors – Risks Related to KPLP's Business" section of the
KPT Annual Information Form dated March 8,
2019 available on SEDAR at www.sedar.com: Kruger Inc.'s
influence over KPLP; KPLP's reliance on Kruger Inc.; consequences
of an event of insolvency relating to Kruger Inc.; risks associated
with the Memphis TAD machine; operational risks; Gatineau Plant land lease; significant increases
in input costs; reduction in supply of fibre; increased pricing
pressure and intense competition; KPLP's inability to innovate
effectively; adverse economic conditions; dependence on key retail
trade customers; damage to the reputation of KPLP or KPLP's brands;
KPLP's sales being less than anticipated; KPLP's failure to
implement its business and operating strategies; KPLP's obligation
to make regular capital expenditures; KPLP's entering into
unsuccessful acquisitions; KPLP's dependence on key personnel;
KPLP's inability to retain its existing customers or obtain new
customers; KPLP's loss of key suppliers; KPLP's failure to
adequately protect its intellectual property rights; KPLP's
reliance on third party intellectual property licenses; adverse
litigation and other claims affecting KPLP; material expenditures
due to comprehensive environmental regulation affecting KPLP's cash
flow; KPLP's pension obligations are significant and can be
materially higher than predicted if KPLP Management's underlying
assumptions are incorrect; labour disputes adversely affecting
KPLP's cost structure and KPLP's ability to run its plants;
exchange rate and U.S. competitors; KPLP's inability to service all
of its indebtedness; exposure to potential consumer product
liability; covenant compliance; interest rate and refinancing risk;
and risks relating to information technology, cyber-security,
insurance, internal controls, and trade.
Readers should not place undue reliance on forward-looking
statements made herein. The forward-looking information contained
herein is expressly qualified in its entirety by this cautionary
statement. The forward-looking information contained herein is made
as of the date of press release, and KPLP undertakes no obligation
to publicly update such forward-looking information to reflect new
information, subsequent or otherwise, unless required by applicable
securities laws.
About KP Tissue Inc.
KPT was created to acquire, and
its business is limited to holding, a limited partnership interest
in KPLP. KPT currently holds a 15.7% interest in KPLP. For more
information visit www.kptissueinc.com.
About Kruger Products L.P.
Kruger Products L.P. is
Canada's leading manufacturer of
quality tissue products for household, industrial and commercial
use. KPLP serves the Canadian consumer market with such well-known
brands as Cashmere®, Purex®, SpongeTowels® and Scotties®'. In the
U.S., KPLP manufactures the White Cloud® brand, as well as many
private label products. The Away-From-Home division manufactures
and distributes high-quality, cost-effective product solutions to a
wide range of commercial and public entities. KPLP has
approximately 2,500 employees and operates eight FSC®
(FSC® C104904) certified plants in North America. For more information, visit
www.krugerproducts.ca.
About Kruger Inc.
Kruger Inc., the parent company of
Kruger Products L.P., is a third-generation family company
headquartered in Montréal since 1904, the year it was established.
Kruger Inc. is a major producer of tissue products; 100% recycled
containerboard products; corrugated packaging; publication papers;
specialty papers; 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).
SOURCE Kruger Inc.