Kruger Invests $333M to Enter the Wipe Nonwovens Sector

Kruger Inc. today announced a $333 million investment marking its entry into the nonwovens sector and advancing its long-term portfolio diversification strategy. This new division will focus on manufacturing some of the industry’s most sustainable materials for a broad range of wipe applications. Central to this major project is the installation of the first production line of its kind in Canada, to be built on Île-de-la-Potherie in Trois-Rivières, adjacent to Kruger’s Wayagamack paper mill, with commissioning scheduled for 2028.

The investment was announced during a press conference attended by the Honourable Mélanie Joly, Minister of Industry and Minister responsible for Canada Economic Development for Québec Regions; Bernard Drainville, Québec Minister of Economy, Innovation and Energy and Minister responsible for the Maritime Strategy; Jean Boulet, Québec Minister of Labour, Minister responsible for Canadian Relations and Member of the National Assembly for Trois‑Rivières; Caroline Desrochers, Member of Parliament for Trois‑Rivières; Jean‑François Aubin, Mayor of Trois‑Rivières; Simon Lavigne, Coordinator, Strategic Research and Development, Unifor; Gene Kruger and Sarah Kruger, Co‑Presidents of Kruger; Éric Ashby, Executive Vice President and Chief Operating Officer of Kruger; Mansoor Parvaiz, Senior Vice President and Chief Operating Officer, Kruger Nonwovens; and Jean‑François Cartier, General Manager of the future Kruger Nonwovens Île‑de‑la‑Potherie manufacturing site.

This project was made possible with the support of both levels of government, including a $35 million contribution from the Government of Canada through the Strategic Response Fund (SRF), as well as a $35 million loan from Investissement Québec, acting as financial agent for the Government of Québec, along with a $5,025,000 equity investment in Kruger Pulp and Paper Limited Partnership Holding. Investissement Québec is also investing an additional $25 million from its own funds.

Significant benefits for the Mauricie region

The project will result in the creation of 56 new permanent jobs, bringing total employment at the Île-de-la-Potherie site to over 340 employees, and close to 700 employees across Trois-Rivières, where Kruger will now count three manufacturing sites.

Over nearly two years, the construction work and equipment installation will require approximately 540,000 person-hours and generate significant economic benefits for the region, with direct spending estimated at more than $200 million and nearly 500 direct and indirect jobs created.

A hybrid technology unique in Canada

The new hybrid technology production line will be unique in Canada, combining wet-laid and dry-laid forming processes to develop ultra-high-performance, versatile nonwoven materials suitable for a broad portfolio of wipe applications. Manufactured without plastic fibres or chemical binders, these materials will help redefine standards in a market still largely dominated by products that contain plastic.

Key characteristics of the future materials

• Nonwoven materials made from 100% natural ingredients, including wood fibres sourced from responsibly managed forests, primarily from Canada

• Plastic-free and chemical-free

• Biodegradable and compostable

• Wet and dry strength, high absorbency, and added bulk for a more cloth-like feel, all exceeding current industry standards