Kruger has confirmed a significant step forward in its proposed $700 million investment project at the Corner Brook mill in Newfoundland and Labrador following a provincial letter of intent regarding the mill’s electricity supply agreement.
In the letter, the government indicated its intention to work toward a twelve-month extension of the mill’s existing power purchase agreement with NL Hydro. According to Kruger, the measure would provide greater stability as the company continues to evaluate the diversification project at Corner Brook Pulp and Paper Limited.
The company plans to transform the site into a modernized manufacturing complex designed to improve its competitiveness and long-term resilience. The project includes upgrades to existing operations and site infrastructure, as well as investments intended to expand renewable energy capacity and modernize existing hydroelectric facilities.
Kruger said the investments would help strengthen the mill’s competitive position in Canada while supporting the forestry and industrial activities tied to the mill and the regional economy.
As the only remaining paper mill operating in Newfoundland and Labrador, Corner Brook Pulp and Paper plays a central role in the province’s forest and sawmill sector at a time when publication paper markets continue to face structural pressure.
Kruger added that the scale and complexity of the project will require continued alignment among governments, forest industry partners and other stakeholders to maximize the project’s long-term economic benefits for the region and the province.
Founded in Montréal in 1904, Kruger operates in the tissue, recycled containerboard, packaging, pulp and paper, and renewable energy sectors. The company operates facilities across Canada and the United States and employs approximately 6,000 people.
