CORNER BROOK, NL, May 21, 2026 /CNW/ - Kruger confirmed today that a significant step has been taken toward advancing its proposed $700 million diversification project at Corner Brook Pulp and Paper Limited (CBPPL), following the issuance of a non-binding letter of intent by the Government of Newfoundland and Labrador. Through this letter, the government has indicated its intention to work toward extending the Mill's existing power purchase agreement with NL Hydro for an additional twelve months to provide stability while the project is further assessed. This step reflects the Province's willingness to work collaboratively with Kruger to support CBPPL's continued operations and long-term future.

Since acquiring the Corner Brook Mill more than four decades ago, Kruger has remained committed to ensuring its continued viability despite persistent challenges in publication paper markets. As the only remaining paper mill in Newfoundland and Labrador, the facility is widely recognized as a cornerstone of the province's integrated forest and sawmill industry, supporting rural communities, high-quality employment, and the broader forestry economy.

The diversification project outlines a comprehensive plan to transform the Corner Brook site into a modern, competitive, and sustainable manufacturing complex. As previously announced, the project would include modernization of existing operations, upgrades to site infrastructure, and investments to expand renewable energy capacity and modernize existing hydroelectric facilities, positioning the Mill among the most competitive of its kind in Canada. In addition to securing the future of the Mill, the project aims to strengthen its supporting operations while also sustaining high-quality employment and reinforcing economic vitality across the region.

Given the scale and complexity of the project, continued alignment among all levels of government, along with the forest industry and other key stakeholders, will be essential to supporting the Mill's future and unlocking its full benefits for Newfoundland and Labrador.

About Kruger Inc.

Founded in Montréal in 1904, Kruger Inc. is a major provider of tissue products, 100%-recycled containerboard, corrugated packaging, publication papers, specialty papers, pulp, and renewable energy. The Company is also a leader in paper and paperboard recycling in North America. A privately held family company, Kruger Inc. has 6,000 employees and its facilities are located in Québec, Ontario, British Columbia and Newfoundland and Labrador, as well as in the States of Tennessee, Maine, New York, Virginia, Kentucky and Rhode Island. www.kruger.com

SOURCE Kruger Inc.