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Metsä Tissue to Market Georgia-Pacific Tissue in Russia

Espoo, Finland, 22 June 2011 -- (GLOBE NEWSWIRE) -- Metsä Tissue, part of the Metsäliitto Group and a leading tissue and cooking paper supplier Europewide, and Georgia-Pacific ZAO, part of Georgia-Pacific LLC a leading producer of tissue, paper, packaging, and building products, have announced an exclusive agreement under which Metsä Tissue would obtain the license to manufacture, sell, and market Georgia-Pacific-brand consumer tissue in Russia.

On top of the signed license contract, Metsä Tissue will purchase a selected portion of the finished goods stock of tissue products in Russia. Metsä Tissue will then commence the production and sale of the product in Russia alongside its own consumer brands. In 2010, Lotus consumer sales in Russia were around 20 million euros.

With the agreement, Georgia-Pacific will refocus its Russian business on the away-from-home market. Georgia-Pacific will continue to manufacture, sell, and market its consumer brand throughout the rest of the region.

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

The agreement will strengthen Metsä Tissue’s position in the Russian consumer tissue market, making it the second-biggest supplier in the branded category. This complies with its announced intention to seek brand growth in Russia. “The deal is a natural progression of Metsä Tissue’s commitment to developing our business in Russia”, said Hannu Kottonen, CEO of Metsä Tissue.

Metsä 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.

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, and some 3200 employees. Turnover is EUR 940 million. Metsä Tissue is part of the Metsäliitto Group.

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