Kruger Specialty Papers has temporarily shut down its facility in Brompton, Québec, due to "unfavourable market conditions".
The company, which was founded in 1904 and produces tissue products, 100% recycled containerboard products, corrugated packaging, publication papers and renewable energy, said the market had deteriorated "very rapidly" with the COVID-19 outbreak. According to a statement released by the company, the pandemic has affected the facility's operations and financial performance.
The production of both newsprint and speciality papers for the flexible packaging sector will be curtailed, alongside the facility's biomass cogeneration plant. The closure will affect 272 employees.
Kruger's Bromptonville biomass plant has a capacity of 23MW. It also has a biomass cogeneration plant in Corner Brook, Newfoundland, with a 17.6MW capacity.