Metsa Tissue Makes Deal to Produce and Sell G-P's Lotus Products in Russia

June 24, 2011 - Metsa Tissue and Georgia-Pacific ZAO (part of Georgia-Pacific LLC) have announced an exclusive agreement under which Metsa Tissue would obtain the license to manufacture, sell and market Georgia-Pacific’s Lotus® consumer tissue brand in Russia.

According to Metsa Tissue, on top of the signed license contract, the company will purchase a selected portion of the finished goods stock of Lotus products in Russia. Metsa Tissue will then start the production and sale of well-known Lotus-brand products in Russia alongside its own consumer brands, Lambi and Mola.

In 2010, Lotus consumer sales in Russia were around 20 million euros, Metsa Tissue said.

With the agreement, G-P will refocus its Russian business on the away-from-home market.

G-P will continue to manufacture, sell and market its Lotus consumer brand throughout the rest of the EMEA region, Metsa Tissue said.

The parties expect to close the deal at the end of the third quarter 2011, after which Metsa Tissue will initiate Lotus brand production and sales to Russian customers.

Metsa Tissue said the agreement will strengthen its position in the Russian consumer tissue market, making it the second-biggest supplier in the branded category.

"The deal is a natural progression of Metsä Tissue’s commitment to developing our business in Russia," said Hannu Kottonen, CEO of Metsa Tissue.

Metsa Tissue entered the Russian market in 2004. Since then, the company has established two offices in the Moscow region and in 2008 launched consumer and away-from-home product converting operations in Naro Fominsk.

SOURCE: Metsa Tissue