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Kruger Products LP to Increase Tissue Production Capacity

Montréal, Québec, Canada, 19 August 2011 -- Kruger Products L.P. (KPLP) today announced that it will continue to expand its presence in the North American tissue market by implementing new state‐of‐the‐art manufacturing equipment at its Memphis, Tennessee, mill. The USD 316 million investment will increase the company’s production capacity by 18%, or 60,000 metric tons per year of additional products to be distributed for the most part in U.S. markets.

The expansion project is an integral part of KPLP's long term strategic development plan. “The proximity of our Memphis mill to growing U.S. markets will further strengthen our competitive position in North America, which will benefit all our establishments in both Canada and the U.S.,” said Mario Gosselin, chief operating officer for Kruger Products L.P.

Since the Kruger Company acquired its tissue mills in 1997, it has made significant investments of more than CAD 450 million in its four Canadian mills, including CAD 230 million to modernize its Crabtree, Quebec, facility, which allowed Kruger Products to remain a leader in the Canadian market. The new investment announced today will help consolidate this leading position, and it will give Kruger Products the latitude it needs to develop its activities at the North American level.

The project, which involves the investment of a new tissue machine and a state‐of‐the‐art facility to accommodate this new asset, is partly financed by a USD 211 million loan from the Caisse de dépôt etplacement du Québec, a leading Canadian institutional fund manager.

A subsidiary of Kruger Inc., Kruger Products L.P. is Canada’s leading manufacturer of quality tissue products for household, industrial and commercial use. The company has 2500 employees and operates five Forest Stewardship Council‐certified mills, four of which are located in Canada and one in the United States. For more information, visit www.krugerproducts.ca.


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