Metsä Tissue signs license agreement with Georgia-Pacific in Russia
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 20 million Euros.With the agreement, Georgia-Pacific will refocus its Russian business on the away-from-home market (AFH). Georgia-Pacific will continue to manufacture, sell and market its Lotus consumer brand throughout the rest of the EMEA region (Europe, Middle East and Africa).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, after SCA, 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.