Kruger Products is to boost its ultra-premium tissue capacity and expand its presence across North America after investing in a state-of-the-art TAD tissue plant.
Announced in its third quarter results, the company said production of the TAD tissue facility – with the supplier currently confidential – and its related converting lines was estimated to start-up in 2028, in the western United States.
Location selection is in its final stages, and once up and running it is expected to have an annual production capacity of 75,000 metric tons.
Reporting its results for the third quarter, the company said revenue was up 7.7% to $561.1m compared with $521.1m in Q3 2024, while net income was $14.6m compared with $18.0m in Q3 2024.
Dino Bianco, KP Tissue’s Chief Executive, said the company “accelerated profitable sales growth” in the third quarter of 2025, resulting in Adjusted EBITDA improving 30.4% year-on-year to $85.7m: “We are particularly pleased with share gains in the paper towel and facial tissue categories, which grew over a 52-week period on the strength of heightened brand support and innovations in the premium product segment.
“In terms of our AfH segment, sales and profitability increased both year-on-year and sequentially, bolstered by consumer brands like Scotties and Cashmere selling well in the commercial market.
“Our expanded in-sourcing of paper also contributed to generating double-digit Adjusted EBITDA growth for this business.”
He added the business is on its way to delivering a third consecutive year of strong financial results.
“In addition, we have significantly deleveraged our balance sheet to prepare for the next phase of investment in support of our growth focus,” he said.
“Accordingly, we are proud to announce the construction of a new, modern TAD tissue facility.”
Since 2018, Kruger Products has invested over $1bn in Canada to increase tissue capacity and accelerate the growth of its business.
The latest facility will join the company’s existing Memphis plant and nine Canadian plants.
