Metsä Tissue, a part of Metsä Group, is investing in a new production line for professional tissue papers at its Raubach mill in Germany. The total value of the investment is approximately €10mn.
The new MF4 production line with annual production capacity of 16,000 tonnes will produce folded hand towels, which are used typically in public washrooms.
“Demand for professional tissue paper products is growing and according to our strategy, we are increasing our capacity to meet the market situation. The investment will strengthen our market position especially in Western Europe,” commented CEO Esa Kaikkonen.
Production on the new line will begin during the second quarter of 2021.
Last month, the company agreed to divest its napkin business to keeeper Group, which is part of Mutares Group. The transaction includes the real estate, machinery and equipment and warehouses at the Stotzheim mill in Germany as well as the Fasana and Mondial brands. As a result of the transaction, the mill’s personnel will be transferred to the new owner as existing employees.
“The napkin business has not reached profitability targets lately and napkins are not part of our core offering anymore. Thus, we have explored all the alternatives for the business to find the best solution for the Stotzheim mill and its personnel,” sais Esa Kaikkonen, CEO of Metsä Tissue. "When completed, the divestment will support Metsä Tissue’s strategy and enables us to focus on our core business, producing high-quality tissue and greaseproof papers close to our customers.”
About Metsä Tissue
With its high-quality tissue and greaseproof papers, Metsä Tissue makes life more comfortable for consumers, customers and end-users every day. Metsä Tissue is a leading tissue paper products supplier to households and professionals in Europe and the world’s leading supplier of greaseproof papers. Its main brands are Lambi, Serla, Mola, Tento, Katrin and SAGA. With production units in five countries, the company employs a total of about 2,800 people. Sales in 2018 totalled €1bn. Metsä Tissue is part of Metsä Group.