11/06/2007

Leicester based LPC Group has agreed the acquisition of the Duffel Mill in Belgium from Kimberly-Clark, and will take over the mill in August this year. The purchase is the latest move in LPC’s recent European expansion, following on from acquisitions in Sweden and France. LPC Group is already an established market leader in the UK, and is fast becoming a major player internationally with production capacity now over 200,000 tonnes p.a.

Amin Tejani, LPC’s Executive Chairman explains:

"This is an important step in our expansion plans, and we’re delighted to have concluded the purchase. From our experience of Kimberly-Clark we know we will be getting a highly efficient mill and workforce, whose futures we are pleased to have secured. We now look forward to building on our position as the market leading private label tissue supplier in the UK, offering retailers across Europe the same high levels of product quality and service from our three locations in mainland Europe."

A key priority throughout the negotiations has been to secure the future of the Mill and its dedicated workforce. LPC Group intends to continue to operate the Mill under a similar structure, all its business and personnel will be transferred to LPC in August 2007. There are no job losses anticipated as a result of the change in ownership. Management and sales for Duffel will be controlled from LPC’s European Head Office.

LPC will continue to develop both in the UK and mainland Europe. An additional paper machine with a capacity of 60,000 tonnes p.a. has been ordered for the UK and a similar installation will see LPC’s capacity in Sweden increase by 40% in 2008. Permission and grants have also already been approved on green field sites in Germany and Spain, where production is planned to commence by 2010. Capacity and subsequently revenue will more than double in the next three years.

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