Metsä Tissue signs a Memorandum of Understanding to acquire M-real's PM 5 and related assets at Reflex mill in Germany
Metsä Tissue Corporation, a leading tissue and cooking paper supplier and part of the Metsäliitto Group, has signed a Memorandum of Understanding (MOU) to buy a specialty paper machine (PM5), related equipment and a power plant at M-real Corporation's Reflex mill located in Düren, Germany.
The transaction is subject to negotiation of the final transaction agreements and other conditions set out in the MOU, including employment of about 50 members of personnel currently operating PM 5 and the power plant. The majority of the Reflex mill's assets will remain in M-real's ownership. If all the conditions are fulfilled the parties' preliminary aim is to complete the deal no later than the last quarter of 2010. The planned deal is a good strategic fit with Metsä Tissue's ambition to capture future market growth in the Baking & Cooking business with an innovative offering and second-to-none supply security. The mill's close proximity to key markets as well as synergies with Metsä Tissue's three existing tissue paper mills in Germany and other nearby production and warehousing locations would further improve product availability and service. On top of that, the technology at the German site would allow quality enhancements as well as new product and category development. Metsä Tissue's Baking & Cooking offering is sold and marketed world-wide under the SAGA brand. For further information, please contact: Hannu Kottonen, CEO Tel. +358 (0) 1046 54959 Email: hannu.kottonen@metsatissue.com Raija Mörö, SVP, Baking & Cooking Tel. +358 (0) 1046 47610 Email: raija.moro@metsatissue.com Marja-Leena Dahlskog, Communications Manager Tel. +358 (0)1046 55149 Email: marja-leena.dahlskog@metsatissue.com Metsä Tissue is a leading tissue paper products supplier to households and large-scale consumers in Europe. We are also the world's leading supplier of baking and cooking paper products. Our main brands are Lambi, Serla, Mola, Tento, Katrin, Fasana and SAGA. We have 3150 employees and production based in Finland, Germany, Poland, Russia, Slovakia and Sweden. Our turnover is EUR 890 million. Metsä Tissue is part of the Metsäliitto Group. SAGA is a high-quality brand for consumers and professionals in baking and cooking markets globally. With its smart, user-friendly features, SAGA makes it easy and inspiring to prepare, cook and serve tasty and healthy food. The SAGA offering consists of multipurpose food-grade and greaseproof cooking and baking papers. SAGA is a registered trademark of Metsä Tissue, the world's leading supplier of cooking papers.