Metsa Tissue to Invest EUR 30 Million at Duren Mill
Nov. 4, 2010 - Metsa Tissue Corp announced plans to invest nearly EUR 30 million in its newly acquired paper capacity at the Duren mill in Germany.
The investment amount includes approximately EUR 10 million in a deal Metsa Tissue made with M-real involving M-real's Relfex mill (Duren, Germany) whereby Metsa Tissue purchased and takes over operation of a paper machine (PM5), related real estate, and infrastructure assets at the mill.
(See: M-real Agrees to Sell Portion of Reflex Mill's Operation to Metsa Tissue)
According to Metsa Tissue, the investment program will begin immediately with a machine rebuild scheduled to be ready during the second quarter of 2011. The rebuilt paper machine will be equipped with enhanced coating options and supported by five converting lines and other related equipment. One of the converting lines is new and the others will be moved gradually from Finland.
Converting is scheduled to start up between February and July 2011, the company said.
In its third quarter financial statement, Metsa Tissue indicated that it intends to launch production of SAGA products — the company's line of premium baking and cooking papers — at the Duren mill in the first half of 2011.
"The mill's close proximity to key markets will improve product availability and create synergies with the company's existing production and warehousing locations," the company said.
Metsa Tissue also noted that "Baking and Cooking" paper production at the company's Mantta mill in Finland will be downsized from two paper machines to one during the first half of 2011 when an 82-year-old paper machine is shut down.
“This investment program is a major step in the development of our Baking and Cooking business,” says Hannu Kottonen, Metsa Tissue's CEO.
Raija Moro, senior vice president, Baking & Cooking business, said, "With the help of these newly acquired and rebuilt assets, we will further enhance SAGA's product quality and launch new products and categories strengthening the brand. We will do this in close co-operation with our end-users."
SOURCE: Metsa Tissue