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Kruger Products Inc. announces increase to production capacity with $14.5 million investment

GATINEAU, QC (News release) -- Kruger Products Inc., a company in which KP Tissue Inc. (TSX: KPT) has a limited interest, today announced a major increase in its production of Scotties® facial tissues at its Richelieu Plant in Gatineau, Québec. The announcement was made in the presence of Christopher Skeete, Québec Minister for the Economy; Suzanne Tremblay, the Member of the National Assembly for Hull, and Michel Manseau, Senior Vice President and General Manager, Consumer Products - Canada, Kruger Products.

Through this expansion project, which received investments totaling $14.5 million and created 16 jobs, Kruger Products commissioned a new facial tissue converting line at its Richelieu Plant in November 2023. The additional equipment will increase the production of facial tissue by 25%.

Another component of the project will be rolled out at the Laurier Plant, also in Gatineau, where new equipment will collect tissue production residues. With a view to the circular economy, the residues will be repulped for the manufacture of value-added projects. This component, which is expected to be completed in June 2025, will also enable the Laurier and Richelieu Plants to increase their productivity.

Investissement Québec provided support for the project in the form of a $7.27-million loan granted under the ESSOR program.

"I congratulate everyone who contributed to the installation of our new converting line at the Richelieu Plant, on time and on budget. Ultimately, our recent investments and our new converting line in Gatineau will allow us to increase our facial tissue capacity by 2.2 million cases annually by providing high quality products and diverse capability to respond to the increase in demand observed in the North American market."

- Michel Manseau, Senior Vice President and General Manager, Consumer Products - Canada, Kruger Products

"This investment will help Kruger Products to produce more in Québec, and that's what makes me particularly proud. When we support our companies in their modernization and expansion, we strengthen Québec's assets and ensure that we are always more competitive."

- Christopher Skeete, Québec Minister for the Economy, Minister Responsible for the Fight Against Racism and Minister Responsible for the Laval Region

"We support companies so that they can not only become more efficient, but also reduce their environmental footprint. This project will enable Kruger Products to make better use of its resources, with a view to increasing productivity and the circular economy."

- Suzanne Tremblay, Member of the National Assembly of Québec for Hull

Since 2018, Kruger Products has invested more than $1 billion in state-of-the-art manufacturing facilities to meet consumer needs. The new converting line in Gatineau consolidates our Richelieu Plant as a centre of excellence in facial tissue manufacturing and is part of a broader objective to expand the Company's activities in North America.

As a leader in the facial tissue category, Kruger Products has ten plants in North America with significant capacity to supply facial tissue to the market under the Scotties® and Bonterra™ brands in Canada and White Cloud® in the United States.

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