Jul 04, 2006. /Lesprom Network/. Swiss paper manufacturer Baumgartner Holding AG and industrial group Wipf plan to merge their envelope production divisions, according to Trade-net. Baumgartner will transfer its envelope production subsidiary Elco Papier AG to Wipf, which the latter plans to merge with its sector unit Seetal Schaller AG. The new company will operate under the name Seetal Elco AG and will be fully owned by Wipf. The move is aimed at increasing the competitive power of the companies through increased productivity. Baumgartner and Wipf did not exclude the possibility of job cuts resulting from the merger. The merger process is planned to be launched in the second half of 2006 and closed by January 2007. Baumgartner will present financial details on the transaction in the middle of September 2006. Seetal Schaller, employing 220, generates annual sales of CHF 60 million ($48.9 million) with an output of 1.3 billion envelopes a year. Elco, with a workforce of 170, turns annual sales of around CHF 50 million ($40.8 million), producing 960 million envelopes a year.