Metsä Group has announced a series of investment plans to advance the long-term competitiveness of its tissue paper business in Kreuzau, Germany, including the closure of one tissue machine.
The company said the tissue industry operates “in a challenging and highly competitive market environment, characterised by increasing cost pressure due to higher energy and raw material costs.”
In a bid to lead the Kreuzau tissue paper mill “back on a profitable growth path”, Metsä Group said it will take several actions to ensure the mill’s long-term competitiveness and to build on the site’s existing strengths.
These will include efficiency measures and investments into modernising the production equipment and capacity adjustments, which will include the closure of one paper machine at the end of its lifecycle, affecting a total of up to 120 jobs.
The target is to balance the paper making and converting capacities at the mill and to focus the mill on manufacturing only consumer tissue products.
In order to implement these plans, Metsä Tissue announced to commence change negotiations with the works council at the Kreuzau mill.
Tobias Lüning, SVP West, and Country Manager of Metsä Tissue, said: “We are committed to ensuring the long-term success of our Kreuzau mill.
“Introducing these plans to adjust our capacity and including the related possible personnel impacts are unfortunate but necessary.
“With these plans, we aim to strengthen our position in the production of sustainable tissue paper products in the competitive German market.
“We will work together with our personnel and the works council to find the best possible solutions to the situation.”
Kreuzau is one of the largest tissue paper mills in Europe and largest within Metsä Group. The mill is offering fresh fibre-based tissue paper products to Central European customers.