Kruger to Shut Three Paper Machines

Shutdown to occur during Christmas holiday and to affect 350 employees.

Forestry company Kruger Inc., Montreal is shutting down three paper machines during the Christmas-New Year period, affecting 350 workers in Quebec and Newfoundland.

The private Montreal company said Friday it will shut the machines for eight days beginning Dec. 24 at two mills in Trois-Rivieres, Que., and one mill in Corner Brook, Nfld. Operations will resume Jan. 3.

"Although there are orders for the three machines, and normally all of the company's paper machines operate over the Christmas holidays, the shutdowns are necessary mainly given the important negative economic impact caused by the increasing value of the Canadian dollar," Kruger said.

The company added that it is reviewing its mills to determine if further shutdowns are warranted.

Kruger makes newsprint, various grades of paper, tissue, cardboard, lumber and other wood products. Subsidiary Scott Paper is the biggest tissue manufacturer in Canada.

The Kruger group employs more than 10,500 people in Quebec, Ontario, Alberta, British Columbia, Newfoundland, the United States and the United Kingdom.