Körber tissue business to pursue growth under Valmet

Körber’s tissue business is being acquired by Valmet in a move that is described as a “good strategic fit”. The value of the deal between the German group and the Finnish engineering giant was not revealed.

In a statement, Körber, a fullyintegrated global provider of advanced technologies for the tissue industry, said the move would continue its successful evolution towards [being] a leading player.

Stephan Seifert, chief executive of the Körber Group, commented: “This is an excellent opportunity to form a unique tissue player and set the course for the future. The complementary positioning as well as the shared entrepreneurial mindset and clear customer focus contribute to the best conditions for a successful joint growth trajectory.

“Our Business Area Tissue will be able to further expand its potential, offering, and reach with Valmet as its new committed owner, who will accelerate our efforts to date. At the same time, Körber continues and stays fully dedicated to strengthen its other Business Areas and pursue its organic and inorganic growth strategy.”

Commenting on the deal, chief executive of Valmet Pasi Laine, said: “The combination of Valmet’s current tissue making technologies, services and automation offering and the acquired tissue converting offering and competences is a good strategic fit and forms a strong basis to create new business opportunities and serve our customers even better. We are happy and proud to warmly welcome all the new colleagues from Körber’s Business Area Tissue to become part of Valmet.”

Körber will remain a partner with Valmet and the tissue industry, through offerings in its other areas, such as palletisers from the supply chain business. With its ventures like FactoryPal, Körber will further advance its strong stance in digital systems for manufacturing efficiency in the tissue industry.

Körber said that its tissue business is in an excellent position with the industry’s most comprehensive portfolio of tissue technology to support customers across the value chain of tissue converting and packaging – from roll to fold, from converting to packaging. Its technologies, products, and digital services complement Valmet’s competencies and

UPM to close its Plattling mill in Germany

With the continued decline in demand for graphic papers, UPM Communication Papers is planning to permanently close its Plattling mill in Germany, reducing its uncoated and coated publication paper capacity by 595,000 tonnes a year in Europe.

UPM says the plans are a continuation of necessary steps to ensure competitiveness of its operations and align its graphic paper capacity to demand.

The mill has two paper machines with capacity to make 380,000 tonnes of uncoated publication paper and 215,000 tonnes of coated publication paper.

Massimo Reynaudo, executive vice president at UPM Communication Papers, explained the plans: “Mature graphic paper markets require continuous and relentless efforts to ensure cost competitive operations that also meet the future customer demand. UPM is committed to leading our business in a responsible manner. We respect the interests of both our workforce and our customers and consider them a central part of our plans. We recognise that [the] announcement is very difficult news for our employees in Plattling. Together with the employee representatives, we will seek responsible solutions for our personnel and enter directly into a fair dialogue.” current portfolio of tissue-making technologies, services, and automation.

Restructuring charges will cost €122 million, resulting in annual fixed-cost savings of €60m.

At the same time, UPM Communication Papers is planning temporary layoffs in Finland. Decisions on the continuation of the possible temporary layoffs in the four mills will be taken after the consultations have been concluded. Around 1,100 employees are covered by the consultations.

Oswaldo Cruz, chief executive of Körber Business Area Tissue, added: “Valmet has profound market expertise, a strong customer focus, and extensive experience in integrating additional competencies. We are very pleased that in Valmet, we have found the ideal future partner for our employees, customers, and suppliers to leverage the full potential of our tissue business.”

● With a joint investment of around €29 million from Stora Enso and Tetra Pak, a recycling line for post-consumer beverage cartons has started up at Ostrołęka in Poland. Stora Enso has installed a repulping line that will recover carton fibres, while Tetra Pak and Plastigram have a new line with the potential to triple the annual recycling capacity of beverage cartons in the country to 75,000 tonnes, enough for the total volume of beverage cartons sold in Poland, as well as additional volumes from neighbouring countries, including the Czech Republic, Hungary, Slovakia, Latvia, Estonia and Lithuania.