Kruger Products to Shut Down Older Production Assets at Memphis Plant

KP Tissue said high quality facial tissue and premium Through Air Dry (TAD) products will continue to be produced at its Memphis plant.

Nov. 15, 2022 - KP Tissue Inc. (KPT) and Kruger Products announced that it will shut down certain older and inefficient production assets including a light dry crepe paper machine and six converting lines in early January 2023 in Memphis, Tennessee.

KPT said high quality facial tissue and premium Through Air Dry (TAD) products will continue to be produced at its Memphis plant by approximately 400 remaining employees. The 165 employees impacted by this decision will receive severance and employment transition support.

The Memphis plant is operated by Kruger Products' subsidiary, K.T.G. (USA) Inc., and after the asset shutdown will have a production capacity of 85,000 metric tonnes per year.

"While this is a difficult decision, it is necessary to ensure the continued success, competitiveness, and growth of our Memphis plant," said Dino Bianco, CEO of Kruger Products. "We have invested over US$400 million at 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 ongoing dedication and hard work."

The shutdown of these older assets will improve our operating efficiencies and have a positive impact on the profitability of our Memphis operations. Kruger Products will also be working closely with our customers to make this a seamless transition.

SOURCE: KP Tissue Inc.