Record quarterly reported operating income of $1.04 billion driven by unprecedented high lumber prices and a strong operating performance across all regions; record-high quarterly sales of $2.5 billion. Results in the pulp and paper segment largely reflected materially higher Northern Bleached Softwood Kraft (“NBSK”) pulp unit sales realizations, and to a lesser extent, an 8% increase in shipments following transportation disruptions experienced in the first quarter of 2021. These factors more than offset the impact of the stronger Canadian dollar and market-related fibre cost increases in the current quarter.
Due to market conditions that remain unfavorable, after a 6-month temporary shutdown, Kruger Specialty Papers is forced to permanently shut down its newsprint, specialty papers and pulp production at its Brompton Mill. However, the water treatment plant will continue to operate and the biomass cogeneration plant will restart.
The Company will use all the measures at its disposal to minimize the impact of this shutdown on the 189 affected employees, including the creation of a reclassification committee. Furthermore, approximately 25 employees will return to work to restart the biomass cogeneration plant.
Kruger wishes to express its sincere gratitude to all Brompton Mill employees for their service and dedication over the years.
As a result of the shutdown, Kruger’s overall annual production will be reduced by 100,000 mt of newsprint and 70,000 mt of specialty paper.