MISSISSAUGA, Ontario, Nov. 14, 2022 (GLOBE NEWSWIRE) — KP Tissue Inc. (KPT) (TSX: KPT) and Kruger Products today announced the closure of certain older, inefficient production assets, including a Light Dry Crepe paper and six converting lines in early January 2023 in Memphis, Tennessee. High-quality facial tissue and premium Through Air Dry (“TAD”) products will continue to be manufactured at its Memphis plant by approximately 400 remaining employees. The 165 employees affected by this decision will receive severance pay and employment transition support. The Memphis plant is operated by Kruger Products subsidiary KTG (USA) Inc. and after the asset is shut down will have a production capacity of 85,000 metric tons.
“While this is a difficult decision, it is necessary to ensure the continued success, competitiveness and growth of our Memphis facility. We have invested over $400 million (USD) in our Memphis plant since 2010 and it will continue to be an important part of our business. We would like to sincerely thank our employees for their continued dedication and hard work. said Dino Bianco, CEO of Kruger Products.
The closure of these older assets will improve our operational efficiency and positively impact the profitability of our Memphis operations. Kruger Products will also work closely with our customers to make this transition a smooth one.
About KP Tissue Inc. (KPT)
KPT was formed to acquire, and its activities are limited to holding, a limited partnership interest in KPLP, which is accounted for as an investment under the equity method. KPT currently holds a 13.9% stake in KPLP. For more information, visit www.kpissueinc.com.
About Kruger Products LP (KPLP)
KPLP is Canada’s leading manufacturer of quality tissue paper products for household, industrial and commercial use. KPLP serves the Canadian consumer market with well-known brands such as Cashmere®, Purex®, SpongeTowels®, Scotties®, White Swan® and Bonterra™. In the United States, KPLP manufactures the White Cloud® brand, as well as many private label products. The Away-From-Home division manufactures and distributes high-quality, cost-effective product solutions to a wide range of commercial and public entities. KPLP has approximately 2,700 employees and operates nine FSC® COC (FSC® C-104904) certified production facilities in North America. For more information, visit www.krugerproducts.ca.
Certain statements in this press release regarding KPT and KPLP’s current and future plans, expectations and intentions, results, levels of activity, performance, objectives or achievements or any other future events or developments constitute forward-looking statements. Forward-looking statements in this press release include, but are not limited to, statements regarding the continued success, competitiveness and growth of our Memphis plant, the impact of the closure on our productivity, productivity and profitability and the amount of severance and closure indemnities. relating to the stop. The words “may”, “will”, “would”, “should”, “could”, “expect”, “plan”, “intend”, “trends”, “indications”, ” anticipates”, “believes”, “estimates”, “predicts”, “likely” or “potential” or the negative form or other variations of these words or other comparable words or expressions, are intended to identify forward-looking statements . Forward-looking statements are based on certain key expectations and assumptions made by KPT or KPLP. Although KPT and KPLP believe that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on forward-looking statements as no assurance can be given that such expectations and assumptions will prove to be correct. .
Many factors could cause the actual results, level of activity, performance or achievements of KPLP or future events or developments (which could in turn affect the economic benefits derived from KPT’s economic interest in KPLP) differ significantly from those expressed or implied by the forecasts. forward-looking statements, including, without limitation, the following factors, which are discussed in more detail in the “Risk Factors – Risks Related to KPLP’s Business” section of KPT’s Annual Information Form dated March 10, 2022 available at SEDAR at www.sedar.com: Kruger Inc.KPLP’s influence on KPLP; KPLP’s reliance on Kruger Inc.; consequences of an event of insolvency involving Kruger Inc.; the risks associated with the TAD Sherbrooke project; risks associated with the Sherbrooke Expansion Project; operational risks; significant increases in input costs; reduced fiber supply; increased pricing pressure and intense competition; KPLP’s inability to innovate effectively; unfavorable economic conditions; dependence on major retail customers; damage to the reputation of KPLP or KPLP’s trademarks; KPLP’s sales being lower than forecast; KPLP’s inability to implement its business and operating strategies; KPLP’s obligation to make regular capital expenditures; KPLP entering into unsuccessful acquisitions; KPLP’s dependence on key personnel; KPLP’s inability to retain existing customers or obtain new customers; KPLP’s loss of key suppliers; KPLP’s failure to adequately protect its intellectual property rights; KPLP’s dependence on third-party intellectual property licenses; adverse litigation and other claims affecting KPLP; significant expenditures due to comprehensive environmental regulations affecting KPLP’s cash flow; KPLP’s pension obligations are material and may be significantly higher than expected if KPLP’s management’s underlying assumptions are incorrect; labor disputes adversely affecting KPLP’s cost structure and KPLP’s ability to manage its plants; exchange rates and US competitors; KPLP’s inability to repay all of its debt; exposure to potential consumer product liability; compliance with the commitment; interest rate and refinancing risk; and risks related to information technology; cyber security; Insurance; internal controls; Trade; and risks related to COVID-19.
Readers should not place undue reliance on the forward-looking statements made herein. The forward-looking information contained herein is expressly qualified in its entirety by this cautionary statement. The forward-looking information contained herein is made as of the date of the press release, and KPT undertakes no obligation to publicly update such forward-looking information to reflect new, subsequent or other information, except as required by applicable securities laws. require it.
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