KP Tissue Inc. and Krugera Products L.P. announced the completion of construction and successful start-up of their Sherbrooke manufacturing facility featuring Canada's and most modern through-air-dry (TAD) tissue machine. The new facility also comprises three converting lines which have been successfully commissioned. Announcing an additional $240 million issue investment: Kruger Products also announced a further investment of $240M to expand the Sherbrooke operation with new production lines as well as the construction of a new tissue manufacturing facility over the next three years. This investment is part of the Company's broader focus on expanding its business and continuing to offer high quality tissue products to customers across North America. The investment announced is supported by the Government of Québec through Investissement Québec ("IQ") which is investing $165M in loans. The additional capacity will allow Kruger Products to expand its product offering and is expected to enable it to grow its market share across its different categories, including bathroom tissue, paper towels and facial tissue for household and away-from-home use. These are available to consumers under such favourite brands as Cashmere®, SpongeTowels®, Scotties® and Purex® in Canada, and White Cloud® in the U.S. Project Details As part of the $240M investment, the Company plans to add a bathroom tissue converting line to the existing Sherbrooke plant (the "BT Line"), as well as build a new facility that will house an LDC tissue machine (the "LDC Machine") and a facial tissue converting line (the "FT Line"). Construction of this facility is anticipated to start in the summer of 2022 on a site adjacent to the Sherbrooke plant. The BT Line and the FT Line will be commissioned in 2022 and 2023 respectively, while the LDC Machine is expected to start up a year later, in 2024. LDC, which stands for light dry crepe, is one of the most widely used tissue making technologies in the world. At maturity, the LDC Machine is expected to increase the Company's annual output by at least 30,000 MT. This project is also expected to result in the creation of 141 jobs which will add to the 180 jobs already created by the previous TAD project. In addition to creating jobs, the project will bring significant benefits to the region in terms of direct spending estimated at $110M and close to 410,000 person-hours for the construction of the new building and installation of the LDC Machine and two additional converting lines.