17/01/2007

LPC, the UK’s largest independent manufacturer of tissue-based hygiene products, has announced plans to expand its capacity by developing the PM3 tissue manufacturing machine at its factory in Kisa, Sweden. When work is completed, the upgraded machine will be capable of producing an extra 15,000 tonnes of special tissue, increasing its output to 55,000 tonnes. Once the additional capacity from PM3 is added, LPC will subsequently be capable of manufacturing a total of 125,000 tonnes at the site.

Modernisation work began on the PM3 machine under previous owner, Duni, but was put on hold in 2002 when the Kisa Mill and Swedish Tissue were bought by LPC. LPC will now complete the work by employing Austrian company Andritz, with completion scheduled before the end of the year.

The special tissue produced by PM3 will be sold as mother reels to predominantly European customers, which will then convert the paper into other products. The modernisation of PM3 will strengthen the Kisa operations and generate further employment opportunities in the region.

Amin Tejani, Executive Chairman of the LPC Group and Swedish Tissue, says: “Swedish Tissue has performed well during the time we have worked together. The modernisation of the tissue machine is of strategic importance for the Group as it will enable us to supply tissue to our customers in different converting operations all over Europe. Our team at the site, our suppliers and the City of Kisa have all given us great support and we are delighted to be able to expand our operations in Sweden. This development
will benefit everyone involved, so we're looking forward to PM3 coming on-line
in 2007.”

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