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Kruger completes $322 million Memphis tissue machine project and is shipping to customers

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Kruger completes $322 million Memphis tissue machine project and is shipping to customers

March 01, 2013 - 10:12
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SAN FRANCISCO, March 1, 2013 (RISI) -Kruger Products L.P. on Feb. 22 announced it finished the construction phase of its $322 million new through-air-dried (TAD) tissue machine project at its Memphis, TN, mill.

"We are especially pleased to have completed this phase of the project on time and on budget. The startup phase has commenced and we are already shipping products to our customers. The TAD project is a key component of KPLP's North American growth strategy," said Mario Gosselin, CEO of KPLP and KP Tissue.

KP Tissue was created to acquire, and its business is limited to holding, a limited partnership interest in KPLP. It currently owns a 16.9% interest in Kruger Products.

The new TAD tissue machine when fully optimized is expected to increase the company's production capacity by approximately 20%, or 60,000 tonnes/yr.

Kruger Products tissue brands in Canada include Cashmere, Purex, SpongeTowels, Scotties' and White Swan. In the US, Kruger Products manufactures the White Cloud brand and private label products. Kruger Products is currently a wholly‐owned subsidiary of Kruger Inc.