Kruger advances proposed $700 million diversification project in Corner Brook

Kruger has announced further progress on its proposed CAD 700 million diversification project at the Corner Brook Pulp and Paper mill in Newfoundland and Labrador, following the issuance of a non-binding letter of intent from the provincial government.

The Government of Newfoundland and Labrador has expressed its intention to work toward extending the mill’s existing power purchase agreement with NL Hydro for an additional 12 months. The measure is intended to provide greater operational stability while the long-term project continues to be evaluated.

Kruger stated that the decision represents an important step in supporting the future of Corner Brook Pulp and Paper Limited and maintaining collaboration between the company and provincial authorities.

Kruger has operated the Corner Brook mill for more than 40 years and noted that it has continued investing in the site despite ongoing challenges affecting publication paper markets. The facility is currently the only remaining paper mill in Newfoundland and Labrador and plays a key role in supporting the province’s forestry and sawmill sectors, particularly in rural communities.

The proposed diversification project includes a broad modernization plan aimed at transforming the site into a more competitive and sustainable manufacturing complex. Planned investments include upgrades to existing production operations, infrastructure improvements and initiatives designed to expand renewable energy generation capacity while modernising hydroelectric assets connected to the mill.

According to the company, the project is intended to strengthen the mill’s long-term competitiveness within the Canadian paper industry while preserving high-quality industrial employment and supporting the regional economy.

Kruger also emphasised that the scale and complexity of the investment will require continued cooperation between governments, the forestry sector and other industry stakeholders in order to move the project forward successfully.