Tissue production capacity has grown rapidly over the past year in certain markets. Profit margins have been eroded particularly in the Central European retail business. Pulp and recovered paper prices stabilised last summer after two years of rapid inflation, Metsä Tisue writes in its report for the third quarter.Metsä Tissue’s Euro-based pulp costs remained high due to the strong US Dollar. The cost of packaging and chemicals continued to climb steeply in the third quarter. The third quarter marked the completion of the company’s investment program in its Baking & Cooking business in Düren, Germany. The September inauguration of the renewed mill coincided with the launch of a new product concept targeted both at cooking professionals and consumers.Following a licensing deal with Georgia-Pacific announced last June and finalized in September, Metsä Tissue launched the production, marketing and sale of Lotus-brand consumer tissue products in Russia, adding sixteen new sales and marketing experts to the Metsä Tissue team. The company’s strategic goal is to expand its foothold in Russia.Metsä Tissue’s three-year investment program proceeded on schedule at the Krapkowice mill in Poland. /KB