Grigeo Group AB's Major Investment to Expand Tissue Production
Grigeo Group AB's Strategic Investment in Tissue Paper Production
Grigeo Group AB is making a significant move by investing over EUR 106 million to bolster its production of hygiene paper. This investment aims to increase the company's production capacity significantly while contributing to the local economies of both Lithuania and Poland.
Expansion Details and Objectives
The investment project entails the installation of state-of-the-art equipment, including a new generation double-width paper machine. This upgrade is expected to elevate annual production capacity to an impressive 140 thousand tons. Along with this, two automated paper base conversion lines will be set up in Lithuania, as well as an additional line across the border in Poland.
Financial Contributions and Partnerships
Breaking down the financial commitment, Grigeo Group AB will channel over EUR 97 million into modernizing and expanding Grigeo Tissue's UAB facilities located in Grigišk?s. Meanwhile, EUR 9 million will go towards expanding the production facilities of Grigeo Tissue sp. z o.o. in Poland. Significant financing is being provided through loans from SEB bank AB and Santander Bank Polska, with EUR 55.2 million and EUR 6.5 million allocated for business development in Lithuania and Poland, respectively. Grigeo Group AB itself will invest an additional EUR 44.3 million.
Job Creation and Economic Growth
Upon completion of this ambitious project, it is anticipated that approximately 80 new jobs will be created across both Lithuania and Poland. This move not only enhances Grigeo's production capabilities but also serves as a substantial boost to the local workforce.
A Milestone Investment for Grigeo Group AB
This investment marks the largest project in the history of Grigeo Group AB, highlighting the company's commitment to growth and innovation in the hygiene paper sector. The strategic expansion is a testament to the company's vision and drive to meet increasing market demand.
Contact Information
Tomas Jozonis
Chief Executive Officer
+370 5 243 58 01
Frequently Asked Questions
What is the main focus of Grigeo Group AB's recent investment?
The investment focuses on expanding tissue paper production capacity in Lithuania and Poland.
How much is Grigeo Group AB investing in this project?
The company is investing more than EUR 106 million into the expansion project.
What specific upgrades are planned for the production facilities?
Plans include installing a new double-width paper machine and several automated paper base conversion lines.
What economic impact is expected from this investment?
Approximately 80 new jobs are expected to be created as a result of the expansion.
Who are the financial partners involved in this investment?
SEB bank AB and Santander Bank Polska are major contributors, providing substantial loans for the project.
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