Kruger Announces a $377.6-M Transaction to Diversify Two of its Québec Paper Mills into Specialty Niches
Kruger Inc. is announcing today a $377.6-M transaction to diversify operations at its Brompton and Wayagamack Mills into specialty niches, such as flexible food packaging, labelling and digital printing. This major project, undertaken in partnership with the Government of Québec, will help to maintain more than 500 jobs in the Mauricie and Estrie regions. The announcement was made today in the presence of Philippe Couillard, Premier of Québec; Dominique Anglade, Minister of Economy, Science and Innovation and Minister responsible for the Digital Strategy; and Joseph Kruger II, Chairman and Chief Executive Officer of Kruger, as well as Ministers Luc Blanchette, Julie Boulet, and Luc Fortin. Kruger and the Government of Québec have formed a partnership by which Investissement Québec, acting as the government's agent, will grant loans and a loan guarantee totalling $59.8 million and acquire an equity participation of 37.5%, or $44.6 million, in the new entity Kruger Specialty Papers Holding L.P. The new entity comprises the assets of the Brompton and Wayagamack Mills, as well as the Biomass Cogeneration Plant adjacent to the Brompton Mill. Click Read More below for additional detail.