Metsä Tissue to Close Production, Converting, Supply Chain Operations at Polish Mill

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Metsä Tissue, Espoo, Finland, part of the Metsäliitto Group and a tissue and cooking paper supplier Europe-wide, 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.

Metsä Tissue says it has carefully analyzed three alternative options for the future use of the Konstancin-Jeziorna site, which were initially communicated 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. This week the company 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. The closure will affect up to 140 employees," says Hannu Kottonen, CEO of Metsä Tissue. The company 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," says Lars Warvne, SVP, Technology and Operations, Metsä Tissue.

Since the initial announcement in May 2010 and during the evaluation of the three options, Metsä Tissue has been working intensively with local authorities to find sustainable solutions to offset the impact 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 Metsä 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.