DGAP-News: Metsae Tissue announces a major investment programme in Poland

Metsae Tissue Corporation

20.04.2011 12:20
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Espoo, Finland, 2011-04-20 12:19 CEST (GLOBE NEWSWIRE) —
Metsae Tissue, part of the Metsaeliitto 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
Metsae 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 Metsae 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 Metsae Tissue. –This investment is also crucial for the brand
growth that Metsae Tissue is pursuing,– Kottonen concludes.

Metsae 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. Metsae Tissue is part of the
Metsaeliitto Group.

For further information, please contact:

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
News Source: NASDAQ OMX

20.04.2011 Dissemination of a Corporate News, transmitted by DGAP –
a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.

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Language: English
Company: Metsae Tissue Corporation

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