Kruger to Enter Nonwovens Market with $333 Million Investment

Kruger Inc. announced a $333 million investment, marking its entry into the nonwovens sector and advancing its long-term portfolio diversification strategy. This new division will focus on manufacturing some of the industry’s most sustainable materials for a broad range of wipe applications. Central to this major project is the installation of the first production line of its kind in Canada, to be built on Île-de-la-Potherie in Trois-Rivières, adjacent to Kruger’s Wayagamack paper mill, with commissioning scheduled for 2028.

This project was made possible with the support of both levels of government, including a $35 million contribution from the Government of Canada through the Strategic Response Fund (SRF), as well as a $35 million loan from Investissement Québec, acting as financial agent for the Government of Québec, along with a $5,025,000 equity investment in Kruger Pulp and Paper Limited Partnership Holding. Investissement Québec is also investing an additional $25 million from its own funds.

The project will result in the creation of 56 new permanent jobs, bringing total employment at the Île-de-la-Potherie site to over 340 employees, and close to 700 employees across Trois-Rivières, where Kruger will now count three manufacturing sites.

Over nearly two years, the construction work and equipment installation will require approximately 540,000 person-hours and generate significant economic benefits for the region, with direct spending estimated at more than $200 million and nearly 500 direct and indirect jobs created.

“We would like to highlight the support of the governments of Canada and Québec, along with Investissement Québec, which is key to advancing innovative projects like this one,” says Éric Ashby, executive vice president and chief operating officer, Kruger Inc. “The creation of our new division focused on 100% natural nonwoven materials is a direct extension of our long‑term diversification strategy. This project will allow us to build on our manufacturing expertise in a growing, innovative sector, while remaining true to our mission of developing more sustainable essential products.”

The new hybrid technology production line will be unique in Canada, combining wetlaid and drylaid forming processes to develop ultra-high-performance, versatile nonwoven materials suitable for a broad portfolio of wipe applications. Manufactured without plastic fibers or chemical binders, these materials will help redefine standards in a market still largely dominated by products that contain plastic.

Key characteristics of the future materials

• Nonwoven materials made from 100% natural ingredients, including wood fibres sourced from responsibly managed forests, primarily from Canada
• Plastic-free and chemical-free
• Biodegradable and compostable
• Wet and dry strength, high absorbency, and added bulk for a more cloth-like feel, all exceeding current industry standards

“As consumers increasingly favor environmentally responsible products, Kruger is well positioned, through this project, to stand out in the growing wipes market,” says Jean Boulet, Minister of Labour, Minister responsible for Canadian Relations and Member of the National Assembly for Trois‑Rivières. “In the Mauricie region, we are fortunate to count on many companies like Kruger that are ready to make strategic investments because they understand that their success is rooted in sustainable development and innovation. We are proud to support these initiatives, which are a source of pride for local communities and contribute to the vitality of our regional economy.”