Kruger Products takes a bold step towards building a new tissue plant

On December 5, 2024, Kruger Products Inc., based in Mississauga, Ontario, announced that it is considering advancing the construction of a new tissue plant following the startup of its latest facility in Sherbrooke, Quebec. This decision comes in light of increasing market competition in the ultra-premium segment of the tissue products industry. The proposed new plant aims to feature a state-of-the-art Through-Air-Dry (TAD) paper machine alongside three converting lines. The company intends to finalize its evaluation and make an announcement regarding this potential investment by early 2025. The evaluation reflects Kruger Products' commitment to growing its business and maintaining its market share as well as ensuring the delivery of high-quality tissue products to consumers across North America. Kruger Products operates ten production facilities across North America and the new plant construction would signify an important strategic move in enhancing its production capacity amid a rapidly changing industry landscape. Furthermore, the company has a substantial workforce, with approximately 2,800 employees dedicated to meeting the demands of the market. The investment in a new state-of-the-art facility aligns with the company's long-term vision of remaining competitive, given the intense competition and the need for consistent innovation in production techniques. Kruger Products is well aware of the risks associated with such expansions, including input cost fluctuations, supply chain challenges, and the pressure to maintain customer relationships in a dynamic market. As Kruger Products continues to evaluate its options, many are keenly observing how the decisions made in the coming months will impact their position in the market and the overall growth trajectory of the company. The industry is likely to see significant shifts depending on their final decision, which is anticipated to be communicated to stakeholders and the public early next year.