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Eastern European Markets

PRESS RELEASE
April, the 20th, 2011

Metsä Tissue announces a major investment programme in Poland

Espoo, Finland, 2011-04-20 12:19 CEST (GLOBE NEWSWIRE) -- Metsä Tissue, part of the Metsäliitto Group and a leading tissue and cooking paper supplier Europe-wide, has announced a three-year investment programme to be launched in Poland. The EUR 55 million investment is the biggest ever in Metsä Tissue’s history and will be targeted at developing the company’s Krapkowice mill in southern Poland into a state-of-the-art production facility.

The company’s development plan published in May 2010 aims to strengthen the company’s market position in Continental Europe, increase its production capacity and enhance its brand, product and service offering. The plan will also enhance productivity by consolidating Polish tissue base paper production at one mill and by further standardising technology.

“The programme includes two new paper machines, related assets and infrastructure as well as a smaller rebuild of Paper Machine 6 in Krapkowice. Two old machines – Paper Machine 11 in Konstancin-Jeziorna close to Warsaw and Paper Machine 5 in Krapkowice – will be closed. The investment programme in Krapkowice will enable a net tissue base paper capacity increase of approximately 35,000 tonnes in Poland,” says Lars Warvne, SVP, Technology and Operations. “Additionally, a new Away-from-Home converting line will be installed and a new rental converting and warehousing building will be constructed. The move from the old warehouses to one efficient unit will further improve the efficiency of goods handling and delivery service,” Warvne adds. Paper machines and related infrastructure will be supplied by Voith Paper.

Thanks to new technology, the mill’s energy and eco-efficiency will be further enhanced. The investment programme and related technology standardisation in Continental Europe will increase asset up-time and flexibility, which will further improve the company’s supply reliability.

The investment will ensure the development of operations in Krapkowice and related job opportunities, which is positive for the entire region.

“The planned actions will strengthen Metsä Tissue’s offering to existing and new customers, consumers and end-users. The investment programme will contribute to our productivity and sustainability and ensure that we will further develop ourselves as a reliable long-term partner,” says Hannu Kottonen, CEO of Metsä Tissue. “This investment is also crucial for the brand growth that Metsä Tissue is pursuing,” Kottonen concludes.

About Metsä Tissue:
Metsä Tissue is a leading tissue paper products supplier to households and industrial consumers in Europe. We are also the world’s leading supplier of baking and cooking paper products. Our main brands are Lambi, Serla, Mola, Tento, Katrin, Fasana and SAGA. We have production units based in Finland, Germany, Poland, Russia, Slovakia and Sweden. We have some 3,200 employees and our turnover for 2010 was some EUR 940 million. Metsä Tissue is part of the Metsäliitto Group.

For further information:
Hannu Kottonen, President and CEO
Tel. +358 (0) 1046 54959,
Email: hannu.kottonen@metsatissue.com
Marja-Leena Dahlskog, Communications Manager
Tel. +358 (0)1046 55149,
Email: marja-leena.dahlskog@metsatissue.com

www.metsatissue.com


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