Espoo, Finland, 20 April 2011 -- (GLOBE NEWSWIRE) -- Metsä Tissue, part of the Metsäliitto Group and a leading tissue and cooking paper supplier Europe-wide, is launching a three-year investment program 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 offerings. The plan also will enhance productivity by consolidating Polish tissue base paper production at one mill and by further standardizing technology.

Improvements will include two new paper machines, related assets and infrastructure, and 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 program in Krapkowice will enable a net tissue base paper capacity increase of approximately 35,000 metric tons in Poland.

A new away-from-home converting line also will be installed and a new rental converting and warehousing building will be built. The move from the old warehouses to one efficient unit will further improve the efficiency of goods handling and delivery service. Voith Paper will supply the paper machines and related infrastructure.

The mill’s energy and ecoefficiency will be enhanced by the new technology. The investment program and related technology standardization 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 program will contribute to our productivity and sustainability and ensure that we will further develop ourselves as a reliable long-term partner,” said Hannu Kottonen, CEO of Metsä Tissue. “This investment is also crucial for the brand growth that Metsä Tissue is pursuing,” he said.

Metsä Tissue is a leading tissue paper products supplier to households and industrial consumers in Europe, and the world’s leading supplier of baking and cooking paper products. The company has production units based in Finland, Germany, Poland, Russia, Slovakia, and Sweden. Metsä Tissue has about 3200 employees and turnover for 2010 was about EUR 940 million. Metsä Tissue is part of the Metsäliitto Group.