Metsä Tissue to Produce, Sell G-P's Lotus Brand Tissue in Russia
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Metsä Tissue, Espoo, Finland, part of the Metsäliitto Group, this week signed an agreement to become a licensed manufacturer and seller of Georgia-Pacific's Lotus® consumer tissue brand in Russia. In addition to the 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 Lotus-brand products in Russia alongside its own consumer brands, Lambi and Mola. In 2010, Lotus consumer sales in Russia were around EUR 20 million.
With the agreement, G-P will refocus its Russian business on the away-from-home market. It 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 strengthens Metsä Tissue's position in the Russian consumer tissue market, making it the second-biggest supplier in the branded category. "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.
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