Kruger Products Ending Tissue Parent Roll Business at New Westminster Mill

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Kruger Products, a subsidiary of Montreal, Que., Canada-based Kruger Inc., reports that its New Westminster, B.C., Canada, mill will cut 187 jobs at the end of August, according to a report in The Province newspaper in Vancouver, B.C. The 90-yr-old mill, which makes toilet paper, facial tissue, and towels, is ending its parent roll supply business.

Mario Gosselin, Kruger Products COO, said in the newspaper article that "these changes will better position the mill for the future with more efficient, lower cost operations. In turn, it will allow Kruger Products to consolidate its leadership in the Canadian premium tissue market."

The company added that although the move will affect 187 positions, it will not impact its consumer at-home (AH) and commercial away-from-home (AFH) businesses. Some 400 staff will continue working at the New Westminster facility. The company said it will ensure that affected employees receive appropriate support.

Kruger Products, formerly known as Scott Paper Ltd, is a producer and distributor of tissue and paper towel products for both AH and AFH use. In 1997, Kruger Inc. purchased the assets of Kruger Products from Kimberly-Clark. The purchase included a 10-year licensing and trademark agreement for the company name, Cottonelle, and ScotTowels trademarks names that expired in June 2007.