Grigeo has acquired a tissue paper mill from Polish tissue paper and paperboard producer Głuchołaskie Zakłady Papiernicze (GZP).
Grigeo Hygiene – which is controlled by the Baltic States-based paper and wood industry group Grigeo - has acquired 100% of the shares of a GZP’s subsidiary Niedomickie Zakłady Papiernicze, which is the operator of a tissue paper business in Niedomice, Poland.
It is the first purchase by Grigeo group of a site in the Polish tissue market. The acquisition was financed from funds raised by Grigeo.
Tomas Jozonis, Chief Executive of Grigeo, said: “This transaction will allow us to strengthen our position in the fast-growing Eastern and Central European market.
“Optimisation of logistics costs will also open up wider opportunities for sales of top-quality products in Germany and other Western European markets.”
The acquisition of the Polish factory was one of the company’s strategic steps: “We acquired not only the factory, but also the expertise.
“We will be able to combine it with the best production practices we already have in the Grigiskes factory when looking for new solutions and expanding our product range.”
It currently employs around 170 people and operates a paper machine and conversion lines.
The company said that according to unaudited data, the acquired GZP unit had an annual turnover of around €40m in 2023 and a business value of around €22m.
Grigeo employs around 860 people, and in 2023 it reported an annual turnover of €195,4m.
In 2023, the net profit of the Grigeo group of companies amounted to €29.6m, an increase of €18.0m compared to the same period in 2022.
Grigeo to become Grigeo Group
In May, Grigeo will change its name to Grigeo Group, a move which means the group’s projects will be divided by the forming of a new tissue paper division in addition to its existing packaging and fibreboard segments.
The current tissue paper business is being transferred to its subsidiary, Grigeo Tissue, as a bundle of assets, rights, and liabilities.
It will be managed together with the tissue mill in Poland, which was acquired on March 28 2024.
Jozonis said: “Our business operates in a dynamic environment, and to be more efficient and competitive, we need to continuously respond to changing market needs.
“I believe that this structural step will significantly strengthen our position in tissue paper production and allow us to ensure even more efficient operations.”
Hygienic paper production in Lithuania will continue to be carried out in Grigiškės, and the company said that employees working there will not be affected by the structural changes.
“Both the updated name and the structural changes to the business will help open wider opportunities for the new Grigeo Group AB as a whole,” he added.
