Metsä Tissue is to divest its napkin business to keeeper Group, part of the Mutares Group.
The transaction includes the real estate, machinery and equipment and warehouses at the Stotzheim mill in Germany as well as the Fasana and Mondial brands.
The mill’s personnel is also planned to be transferred to the new owner.
Esa Kaikkonen, chief executive of Metsä Tissue, said: “The napkin business has not reached profitability targets lately and napkins are not part of our core offering anymore.
“Thus we have explored all the alternatives for the business to find the best solution for the Stotzheim mill and its personnel.
“When completed, the divestment will support Metsä Tissue’s strategy and enables us to focus on our core business, producing high-quality tissue and greaseproof papers close to our customers.”
The transaction is planned to be completed in the first quarter of 2020.