Kruger announces $700M diversification project for Corner Brook Mill

Kruger Inc. says a major step has been taken toward advancing its proposed $700-million diversification project at Corner Brook Pulp and Paper Limited following support from the provincial government.

In a news release issued last week, the company said the Government of Newfoundland and Labrador has provided a non-binding letter of intent indicating its willingness to work toward extending the mill’s existing power purchase agreement with NL Hydro by an additional 12 months.

Kruger said the extension would provide greater stability while the proposed project undergoes further assessment and planning.

The company described the move as a sign of the province’s commitment to working collaboratively to support the continued operation and long-term future of the Corner Brook mill.

Kruger has owned the facility for more than 40 years and says it has continued to invest in the operation despite ongoing challenges facing the publication paper markets. The company noted the mill is the last remaining paper-producing facility in Newfoundland and Labrador and plays a key role in supporting the province’s forestry sector, rural communities and regional employment.

The proposed diversification project would see the Corner Brook site transformed into a modern manufacturing complex through a series of upgrades and investments. Plans include modernization of existing mill operations, improvements to site infrastructure, expansion of renewable energy capacity and upgrades to existing hydroelectric facilities.

According to Kruger, the investments would help position the mill among the most competitive paper manufacturing operations in Canada while helping secure its long-term future.

The company said the project would also support employment, strengthen related forestry operations and contribute to economic growth throughout western Newfoundland.

Kruger noted that continued cooperation among provincial and federal governments, industry partners and other stakeholders will be required as the project moves forward, given its size and complexity.

No timeline has been announced for a final decision on the proposed development.