Kruger Products to build new TAD tissue production plant in Western U.S.

Kruger Products announced its intention to construct a new tissue production facility in the western United States. The project will include a through-air-dry (TAD) tissue machine as well as the associated converting lines. The planned TAD machine is designed to deliver an annual capacity of around 75,000 metric tonnes, with production start-up expected in 2028.

According to Kruger Products, this new facility will strengthen the company’s ability to supply its rapidly expanding U.S. customer base with ultra-premium tissue products. The selection of the exact site is approaching completion and will be confirmed together with additional details on the project scope and financing at a later stage.

“This new tissue investment will be made within an unrestricted subsidiary of Kruger Products and is subject to obtaining financing on satisfactory terms,” the company stated in its earnings report. “The project is currently expected to be financed 40% by equity and incentives as well as 60% by project finance debt.

“This new facility, along with our Memphis plant and 9 existing Canadian plants, gives us a strong network to service our growing North American business,” Kruger Products added.