Kruger Inc. enters nonwovens market with USD 333M investment
This new line will be a Canadian first in combining wet‑laid and dry‑laid forming on a single production platform, enabling production of wipes that the company describes as both high‑performing and compostable
CANADA – Kruger Inc. is launching a new nonwovens division with a USD 333 million investment to produce plastic‑free, chemical‑free, biodegradable nonwoven materials for the wipes market, marking the Canadian paper giant’s strategic entry into sustainable fibre‑based substrates.
The new plant will be located adjacent to Kruger’s existing Wayagamack pulp and paper mill on Île‑de‑la‑Potherie in Trois‑Rivières and is scheduled for start‑up in 2028.
The installation will feature the first Canadian production line that combines wet‑laid and dry‑laid forming technologies to produce high‑performance nonwovens.
The materials to be produced will be plastic‑free and free of chemical binders, formulated from natural inputs, principally wood fibres sourced from responsibly managed Canadian forests, to create biodegradable and compostable wipes.
Kruger says the nonwovens will deliver enhanced wet and dry strength, high absorbency, added bulk and a more textile‑like feel, aiming to exceed current industry performance standards for wipe substrates.
The planned line’s hybrid wet‑laid/dry‑laid approach is intended to combine the best attributes of both forming methods to achieve the claimed performance and tactile properties.
Éric Ashby, Executive Vice President and Chief Operating Officer, Kruger, stated, “The creation of our new division focused on 100% natural nonwoven materials is a direct extension of our long‑term diversification strategy.¨
¨This project will allow us to build on our manufacturing expertise in a growing, innovative sector, while remaining true to our mission of developing more sustainable essential products.”
Kruger expects the project to create 56 permanent positions at the Île‑de‑la‑Potherie site, raising total employment there to more than 340 people, with broader regional employment gains during construction and commissioning.
Construction and equipment installation are projected to generate more than 500 direct and indirect jobs during the nearly two‑year build period, and significant person‑hours of local economic activity and substantial local spending, with direct project spending estimated at over USD 200 million in some summaries.
The federal government provided a USD 35 million contribution to the project through the Strategic Response Fund.
Investissement Québec is participating financially by arranging a USD 35 million loan as agent for the Québec government, making a USD 5 million equity investment in Kruger Pulp and Paper Limited Partnership Holding, and contributing an additional USD 25 million from its own funds in support of the project.
Kruger frames the investment as a diversification of its long‑term portfolio into sustainable fibre‑based materials and as an entry into the growing wipes nonwovens market.
By developing a domestically produced, plastic‑free nonwoven material, Kruger positions itself to meet rising retailer and consumer demand for more sustainable wipe products and to reduce reliance on plastic fibres and chemical binders that dominate some existing wipe substrates.
Engineering, procurement, construction and equipment installation are in the immediate project scope, with commissioning of the new line targeted for 2028.
The company will move ahead with site build‑out, equipment installation and workforce planning while coordinating the public funding and financing elements already announced.
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