AGREEMENT BETWEEN RÉMABEC AND KRUGER

Rémabec and Kruger today announced that they reached an agreement by which Kruger’s Forest Products assets are now the property of a group of companies owned by the shareholders of Gestion Rémabec, a forest company with operations in Mauricie, Saguenay–Lac-St-Jean and the North Shore region.

The transaction involves the assets of Industries Parent Inc., which includes the Parent Sawmill and the Trois-Rivières Planing and Finger-jointing Mill, as well as the two Gérard Crête & Fils S.E.C. mills, namely the Saint-Roch-de-Mékinac Sawmill and the Saint-Séverin-de-Proulxville Planing Mill.

These facilities manufacture lumber and finger-jointed lumber for the Canadian and US markets.

The group plans to continue all four mills’ wood harvesting and processing operations, thereby maintaining more than 300 production jobs. “This is a strategically important acquisition for our group as it will enable us to maximize our forest and sawmill operations. We look forward to working with the community in order to make our mills really successful,” said Réjean Paré, President and Operations Manager, Groupe Rémabec.

About Groupe Rémabec
Founded in 1988, Groupe Rémabec is a group of companies operating mainly in the forest industry as forest contractors, managers of forestry subsidiaries, sawmill owners (softwood and hardwood) and as a manufacturer of wooden stir sticks for the food industry. Groupe Rémabec is headquartered in La Tuque, Mauricie.

About Kruger Inc.
Founded in 1904, Kruger Inc. is a major producer of publication papers, tissue products, containerboard and packaging made from recycled fibres, green and renewable energy, and wines and spirits. The Company is also a leader in paper and paperboard recycling in North America. Kruger Inc. operates facilities in Quebec, Ontario, British Columbia, Newfoundland and Labrador, and the United States.