ESPOO, Finland, March 15, 2002 (PRIMEZONE) -- Metsa Tissue Corporation has signed a Letter of Intent to acquire 25.5 per cent of the shares of the Polish tissue paper company Zaklady Papiernicze w Krapkowicach S.A. (ZPK). The cost of the share acquisition is EUR 1.3 million. The acquisition price is based on the (100%) debt-free value of the whole of ZPK, which is approximately EUR 10 million. The transaction is subject to the results of a Due Diligence process and to the approval of the Polish authorities, which is expected to be given during 2002. Once these conditions have been met, Metsa Tissue Corporation will control more than 50 per cent of ZPK's shares and votes.
ZPK is located in Krapkowice, southern Poland. The mill has a production capacity of 25,000 tonnes a year. It has two tissue paper machines, a modern de-inking plant and converting lines. ZPK's financial result in 2001 was unprofitable.
Metsa Tissue today has a growing tissue paper business in Poland based on its mill near Warsaw. The mill has a production capacity of 20,000 tonnes a year. Metsa Tissue's leading consumer brand name in Poland is Mola. The company's long-term target is to become the market leader in Poland. Acquisition of ZPK will provide significant support for this goal. Metsa Tissue's market share in Poland is currently just under 10 per cent. Once the transaction goes through, Metsa Tissue's share of the Polish consumer products market will increase to about 20 per cent.
The acquisition will have no material influence on Metsa Tissue's earnings per share ratio in 2002.
Metsa Tissue
Metsa Tissue is a European tissue manufacturer whose main market is Europe north of the Alps. The company is the market leader in tissue products in the Nordic countries and the fourth largest supplier of tissue paper in Europe. Its main products are bathroom tissue, household towels, hand towels, industrial wipes, table napkins and tissue handkerchiefs. Metsa Tissue is also the European market leader in papers for baking and cooking. The company's brand names are Lambi, Serla, Leni, Mola, Katrin and Fasana. Metsa Tissue has production plants in Finland, Sweden, Germany and Poland. In 2001, consolidated turnover was EUR 650 million. The number of employees at the end of 2001 was 2,900.
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