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Metsa Tissue to Close Mill in Poland

Metsa, Finland, 12 January 2012 -- Metsa Tissue said that it has decided to close its production, converting and supply chain operations at the Konstancin-Jeziorna mill near Warsaw, Poland. Operations will be terminated in April 2012.

The mill had a production capacity of about 18,000 tons per year of tissue papers.

Metsa Tissue analyzed three alternative options for the future use of the Konstancin-Jeziorna site, which the company initially announced in May 2010. The three alternatives were to use the site for warehousing and converting, to use it solely for warehousing, or to rezone it for residential development.

Today, the company has confirmed that all production at the site will be closed in April 2012 and the two latter options are to be studied further.

"As our Polish and other Eastern and Central European customers can be served by our other mills in Poland, Slovakia, Germany, and the Nordic countries, after weighing our options, this decision — though not easy — was the only sensible course of action," said Hannu Kottonen, CEO of Metsa Tissue. "The closure will affect up to 140 employees.”

Metsa Tissue will immediately initiate a consultation procedure with the Polish employee representatives.

"We made this decision to close our operations in Konstancin-Jeziorna also due to the obsolete infrastructure, which would have required significant short- and long-term investment and would have been unsustainable for the company," said Lars Warvne, senior vice president, Technology and Operations.

Since the initial announcement in May 2010 and during the evaluation of the three options, Metsa Tissue has been working intensively with local authorities to find sustainable solutions to offset the effects of the closure on the community infrastructure. Metsä Tissue has been discussing the option of rezoning the site for alternative uses with local authorities. The rezoning option could support the city’s development as an attractive residential area close to Warsaw. At this stage, the company wants to keep alternative uses of the site open.

As part of Metsa Tissue’s development program announced in May 2010, the company will invest in upgrading its Krapkowice mill in southern Poland to increase production capacity and to enhance the brand, product, and service offering. Implementation of the plan, which includes the closure of Konstancin-Jeziorna’s operations, will contribute to better productivity and sustainability, while also ensuring that the company remains a reliable long-term partner for its customers.


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