Metsä Tissue signs a license agreement related to Georgia-Pacific's Lotus brand in Russian consumer business

Metsä Tissue, part of the Metsäliitto Group and a leading tissue and cooking paper supplier Europe-wide, and Georgia-Pacific ZAO, part of Georgia-Pacific LLC a leading producer of tissue, paper, packaging and building products, have announced an exclusive agreement under which Metsä Tissue would obtain the license to manufacture, sell and market Georgia-Pacific's Lotus® consumer tissue brand in Russia.
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On top of the signed license contract, Metsä Tissue will purchase a selected portion of the finished goods stock of Lotus® products in Russia.  Metsä Tissue will then commence the production and sale of well-known Lotus-brand products in Russia alongside its own consumer brands, Lambi and Mola. In 2010, Lotus consumer sales in Russia were around 20 million euros.

With the agreement, Georgia-Pacific will refocus its Russian business on the away-from-home market. Georgia-Pacific will continue to manufacture, sell and market its Lotus® consumer brand throughout the rest of the EMEA region.

The parties expect to close the deal at the end of the third quarter, after which Metsä Tissue will initiate Lotus® brand production and sales to Russian customers.

The agreement will strengthen Metsä Tissue’s position in the Russian consumer tissue market, making it the second-biggest supplier in the branded category. This complies with its announced intention to seek brand growth in Russia. “The deal is a natural progression of Metsä Tissue’s commitment to developing our business in Russia”, says Hannu Kottonen, CEO of Metsä Tissue.

Metsä Tissue entered the Russian market in 2004. Since then, the company has established two offices in the Moscow region and in 2008 launched consumer and away-from-home product converting operations in Naro Fominsk.

For further information, please contact:

Hannu Kottonen, CEO
Tel. +358 (0)10 46 54959

Kari Muttilainen, SVP, Strategic Projects
Tel: + 358 (0)10 46 94563

Marja-Leena Dahlskog, Communications Manager
Tel. +358 (0)10 46 55149


Metsä Tissue is a leading tissue paper products supplier to households and industrial 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 and SAGA. We have production units based in Finland, Germany, Poland, Russia, Slovakia and Sweden and we have some 3,200 employees. Our turnover is EUR 940 million. Metsä Tissue is part of the Metsäliitto Group.