Minister Joly announces significant federal investment in innovative project to diversify production at Kruger Inc.’s Wayagamack Mill
News release
May 11, 2026 – Trois-Rivières, Quebec
Today, the Honourable Mélanie Joly, Minister of Industry and Minister responsible for Canada Economic Development for Quebec Regions, announced a $35 million federal investment in Kruger Inc.’s nonwovens project at the Wayagamack Mill in Trois‑Rivières, Quebec. This transformative investment, being made through the Strategic Response Fund, will help create and maintain over 350 well-paying jobs in Quebec and support the company’s plans to diversify its production line to include innovative, sustainable products.
The project involves updating and adapting the Wayagamack Mill to manufacture plastic‑free, chemical‑free, biodegradable paper material to be used in the production of finished wipe products. This production line, the first of its kind in North America, will use Canadian natural pulp fibres and mechanical bonding instead of synthetic polymers and chemical binders. The new facility will also significantly reduce product-related greenhouse gas (GHG) emissions while producing a fully biodegradable, plastic-free wipe substrate, with onsite pulp production lowering transport emissions and upgraded processes expected to reduce GHG emissions by 65% per metric ton of product.
The Government of Canada’s investment in Kruger’s cutting-edge project will position the company as a sustainable alternative and ensure it remains a competitive producer in the North American biodegradable wipes market. Amid disruptions to the forestry sector from tariff pressures in key export markets, the federal government is focused on protecting Canadian jobs.
The global economy is rapidly transforming, and the Government of Canada is focused on what we can control. We are building a stronger economy—one that is focused on building a solid foundation of thriving Canadian workers and resilient Canadian industries.
Quotes
“This investment in Kruger Inc. is about protecting and creating good industrial jobs here at home while strengthening Canada’s economic resiliency. By bolstering innovative, productivity‑driven processes, we are helping Canadian companies compete and win in a rapidly evolving global economy.”
– The Honourable Mélanie Joly, Minister of Industry and Minister responsible for Canada Economic Development for Quebec Regions
“We would like to highlight the support of the Government of Canada, which is key to advancing innovative projects like this one. The creation of our new division focused on 100% natural nonwoven materials is a direct extension of our long‑term diversification strategy. This project will allow us to build on our manufacturing expertise in a growing, innovative sector, while remaining true to our mission of developing more sustainable essential products.”
− Eric Ashby, Executive Vice President and Chief Operating Officer, Kruger Inc.
“With this large-scale project, Kruger Wayagamack is reaffirming its role as a leader in the forest industry by focusing on innovation and the integration of cutting-edge technologies. This major investment enables the company to expand into new markets while boosting its productivity and strengthening its competitiveness. I am proud of the support our government is providing to help our businesses position themselves at the forefront and maintain and create good jobs in our regions, ensuring economic vitality in the Mauricie region and in Quebec and Canada as a whole.”
– Caroline Desrochers, Member of Parliament for Trois-Rivières and Parliamentary Secretary to the Minister of Housing and Infrastructure
“Kruger is a flagship company for both Quebec and the Mauricie region. With these investments, the company will be able to further diversify its activities while creating wealth and many quality jobs for local redients. When we help our businesses stand out in new markets, we strengthen Quebec’s assets and ensure its expertise shines around the world.”
− Bernard Drainville, Member of the National Assembly for Lévis, Minister of Economy, Innovation and Energy
Quick facts
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The Strategic Response Fund (SRF) helps Canadian industries innovate, adapt and compete in a changing global economy. The SRF supports large-scale, transformative projects that build economic resilience, strengthen supply chains and protect good jobs in key sectors such as steel, aluminum, automotive, forest products, AI and advanced technologies.
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Plastic pollution is considered to be the fifth-largest environmental problem of our lifetime according to earth.org. The transition to and promotion of biodegradable wet wipes is a necessary step in reducing microplastic pollution.
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Founded in Montréal in 1904, Kruger Inc. is a major provider of tissue products, 100% recycled containerboard, packaging, corrugated board, pulp and paper products, and renewable energy. The company is also a leader in paper and paperboard recycling in North America.
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This Kruger Inc. project aligns with several SRF objectives, including expanding industrial capability, securing new markets and advancing innovation through early technology adoption.
Associated links
Contacts
Gabrielle Landry
Deputy Director, Media Relations
Office of the Minister of Industry and Minister responsible for Canada Economic Development for Quebec Regions
gabrielle.landry@ised-isde.gc.ca
Media Relations
Innovation, Science and Economic Development Canada
media@ised-isde.gc.ca
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