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Metsä Tissue to invest in Russian business

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27/05/2008


Metsä Tissue to invest in Russian business 

Metsä Tissue, a leading supplier of tissue paper products in the European
market has started local converting of its Katrin products for Away-from-Home
customers to further build and grow its business in Russia. The company sees
the start-up of the local production as a next step towards strengthening its
foothold on the market. 

Metsä Tissue has had export business to Russia since the beginning of 1990's
and registered LLC Metsä Tissue as a local company in 2006. Today LLC Metsä
Tissue consists of a sales office in Moscow as well as of warehousing,
distribution and converting operations in Naro-Fominsk, 70 km from Moscow,
supporting all Metsä Tissue businesses. 

Russia is one of the fastest growing markets in Europe offering positive
business potential for the future. The quality and service expectations of
customers and consumers alike are getting higher matching well the company's
offer of high-quality Katrin products to meet specific hygiene, health and
comfort needs of every usage environment from professional hygiene demands in
health care to public washroom usage. On top of the company's Katrin products
Metsä Tissue has been marketing and selling successfully in Russia its premium
consumer brands such as Lambi, Mola and Fasana. 

The investment in local converting in Russia is part of the company's strategy
to invest in its Away From Home business. The recently announced investment in
a new Away-from-Home rewinder at Metsä Tissue's Mariestad mill in Sweden and in
Krapkowice mill in Poland were other examples of the actions taken. 

In practice the local converting also means that the company's production
facilities are located as near as possible to the region where the finished
products are used. This minimizes transportation and ensures the smallest
possible environmental footprint being thus well in line with Metsä Tissue's
environmental policy. 

Metsä Tissue will continue to expand its' activity in Russia.

For more information, please contact;

Hannu Kottonen, CEO

Tel: +358 1046 54959
Mobile: +358 500 532 235
E-mail: hannu.kottonen[at]metsatissue.com

Kari Muttilainen, SVP, Away-from-Home business

Tel: + 358 10 469 4563
Mobile: + 358 500 634 906
E-mail: kari.muttilainen[at]metsatissue.com

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