- Kruger Products (KPT) is beginning the process of shutting down some of the company’s older production assets in Memphis, Tennessee
- The paper producer will close older and inefficient production assets including a light dry crepe paper machine and six converting lines
- All shutdowns are occurring in Memphis and will begin in January
- The company will continue producing its facial tissue and other air dry products at its Memphis plant with approximately 400 remaining employees
- After the asset shutdown, the plant will have a production capacity of 85,000 metric tonnes
- Kruger Products (KPT) is down 0.39 percent trading at $10.15 per share
Kruger (KPT) is shutting down some of the company’s older production assets in Memphis, Tennessee.
The Ontario-based paper producer will close older and inefficient production assets including a light dry crepe paper machine and six converting lines.
All shutdowns are occurring in Memphis and will begin in January.
The company will continue producing its facial tissue and other air dry products at its Memphis plant with approximately 400 remaining employees.
The news affects 165 employees who will receive severance and employment transition support.
After the asset shutdown, the plant will have a production capacity of 85,000 metric tonnes.
The closures will improve the company’s operating efficiencies and have a positive impact on profitability.
“While this is a difficult decision, it is necessary to ensure the continued success, competitiveness, and growth of our Memphis plant. We have invested over $400 million (USD) 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,” said Kruger Products CEO, Dino Bianco.
Kruger Products (KPT) is down 0.39 percent, trading at $10.15 at 10:47 am ET.