Kruger stops production at Brompton newsprint
and specialty paper mill

Newsprint and flexible packaging paper production at Kruger Brompton <br> will be standing still from tomorrow
Newsprint and flexible packaging paper production
at Kruger Brompton will be standing still from tomorrow
01 Apr 2020 − 

The newsprint market is on the decline and with the spread of Covid-19, the market environment has become even more challenging. Kruger has therefore decided to take downtime at the Brompton paper mill.

Canadian forestry group Kruger will temporarily shut down its Brompton newsprint and specialty paper mill. From 3 April onwards, production would be halted for an indefinite period of time, the company announced.

Last week, Krurger had announced that it would be maintaining all of its operations that have been declared essential by authorities and Covid-19 government guidelines, including the Brompton paper mill. However, the company now explains the decision to interrupt operations was prompted by the unfavrouable market conditions. These had deteriorated very rapidly with the Covid-19 outbreak, affecting the mill's operations and financial perdormance, the company said.

The Brompton paper mill produces newsprint as well as flexible packaging paper for food packaging and has 272 employees. In addition, the site has a biomass cogneration plant, which will also be down. Kruger still produces newsprint at its Trois-Rivière and Corner Brooke Pulp and Paper mills.

The Brompton site was originally a mere newsprint mill. Kruger started producing specialty paper at the site in mid-2018 in an effort to establish itself in this sector while gradually reducing its publication paper capacities. The Wayagamack mill, which still produces magazine paper, was also partly switched to specialty paper production shortly afterwards.

The company had earmarked a major investment of CAD107.5m in 2017 for a diversification project, saying it wanted to supply products that are in high demand due to changing market trends. At the time it said that that in the long-term, the Brompton mill would stop producing newsprint completely.

Kruger's portfolio includes tissue products, reycled containerboard, corrugated packaging, publication papers, specialty papers as well as renewbale energy and cellulosic biomaterials. The company has 19 production sites and employs around 5,000 employees.

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