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CRABTREE, QC, June 15, 2017 --- Kruger Products L.P., Canada's leading manufacturer of quality tissue products for household, industrial and commercial use, today provided an update on the new No. 8 Paper Machine (PM8) Project at its Crabtree Plant and invited a few media and partner representatives in Lanaudière to visit the soon-to-be-completed project. The Company also took the opportunity to reveal its recent acquisition of a new $12-million winder, which brings investment in new production equipment at the Crabtree Plant to $67 million over the past year.

"This new and more efficient paper machine and the additional winder will give the Crabtree Plant plenty of room to grow for many years to come, which is very motivating for our employees," said Mario Gosselin, CEO of Kruger Products L.P. "We are particularly pleased with the progress of this project that we expect to complete on time and on budget."

Significant Benefits for Lanaudière

By the time the 11-month project is completed, it will have required 180,000 hours of work by 260 people and generated an estimated 200 indirect jobs. Construction of the new building housing PM8 alone will have generated $7 million in labour expenses.

Direct benefits for the Lanaudière region include a dozen local contractors, subcontractors and suppliers who were involved in the project, providing about $8 million in direct orders and approximately $6 million in local construction labour.

Upon completion of the project to install PM8, more than 11,000 hours of training will have been given to Plant employees, including operators, reserve employees, mechanics and electricians, allowing them to enhance their knowledge and update their skills.

Announced jointly by Kruger Products and the Government of Québec in July 2016, the $55-million investment to purchase and install PM8 received a $39.5-million loan from Investissement Québec, which is acting as an agent of the Government of Québec in this project. Kruger Products also received support from the Joliette RCM and the Municipality of Crabtree – through the Fonds de développement des territoires – Fonds d'aide aux entreprises volet 2 (Territories Development Fund – Business Assistance Fund, stream 2) – to complete this investment.

The new paper machine will boost the Plant's overall production by 29%, or approximately 20,000 metric tonnes annually, and help to consolidate about 640 jobs. The additional volume of paper products will primarily be for the away-from-home market, which includes restaurants and hotels, businesses and institutions.

About Kruger Products L.P.

Kruger Products L.P. is Canada's leading manufacturer of quality tissue products for household, industrial and commercial use. KPLP serves the Canadian consumer market with such well-known brands as Cashmere®, Purex®, SpongeTowels®, Scotties®' and White Swan®. In the U.S., KPLP manufactures the White Cloud® brand, as well as many private label products. The Away-From-Home division manufactures and distributes high-quality, cost-effective product solutions to a wide range of commercial and public entities. KPLP has approximately 2,500 employees and operates eight FSC® certified (FSC® C104904) plants in North America. For more information, visit www.krugerproducts.ca. KP Tissue Inc. (TSX:KPT), which holds a limited partnership interest in Kruger Products L.P., was created exclusively to acquire an equity interest in Kruger Products L.P. For more information on KP Tissue Inc., visit www.kptissue.com.

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