One of the largest paper and wood industry groups in the Baltic States, Grigeo Group AB, is embarking on a record-breaking investment programme of more than Euro 106 million in the expansion of its tissue paper business. This is the largest expansion project in the Group's history, doubling tissue production to 140,000 tonnes per year and strengthening Grigeo Group's position as one of the region's leaders.
The bulk of the investment - over Euro 97 million - will be used to modernize and expand the UAB Grigeo Tissue production plant in Grigiškės, Lithuania. A further Euro 9 million will be spent to upgrade the production and infrastructure of Grigeo Tissue S.p. z o.o., a tissue paper mill in Poland.
According to Tomas Jozonis, CEO of Grigeo Group, the realization of this ambitious vision began when a contract was signed with Toscotec S.p.A., a manufacturer owned by the Germany industrial giant Voith Group, for the acquisition of a new PM7 paper machine.
“The market potential in the Baltics, Scandinavia and Western Europe is growing. The new paper machine alone will produce an additional 70,000 tons of paper per year - a volume that currently requires the combined work of all three machines operated by our Group. This investment is a strategic step for us and opens a new chapter in Grigeo Group's growth story,” said T. Jozonis.
According to him, the new machine will be accompanied by all the modern infrastructure needed for its construction in Grigiškės, including the building of two automatic paper base conversion lines, a pulp warehouse, and a building for the machine itself, which will have a total area of more than , 20,000 square meters.
The next generation paper machine PM7 is scheduled to be operational in the first half of 2028.
To fully exploit an increased paper production capacity, Grigeo Group will also invest in modern paper converting lines. Contracts have already been signed with the Swedish company Valmet AB for two new lines, which will be commissioned in Grigiskes next year: one for the B2C and the other for the B2B segment. Another conversion line for the B2B market is planned for 2027.
The expansion will also include the Grigeo Group's production plant in Poland, which will receive an investment of more than Euro 9 million. The factory will be equipped with a new converting line for paper base and will invest in additional infrastructure.
The increase in tissue paper production capacity will also create new jobs. Up to 35 new employees in Lithuania and Poland are expected to be recruited in the coming years, followed by up to 80 technical specialists, including engineers, technologists, machinists, operators and other professionals, by 2028-2029.
