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 €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 €97 million - will be used to modernize and expand the UAB Grigeo Tissue production plant in Grigiškės. A further €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 on July 23rd this year when a contract was signed with Toscotec S.p.A. 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.
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 investment loan of €55.2 million for the development of the tissue paper business was granted by AB SEB Bank in Lithuania and €6.5 million by Santander Bank Polska S.A. in Poland. €44,3 million will be financed from the company's own resources.
“Investment in high-efficiency production fuels long-term economic growth. The hygiene paper sector, centred on export products, bolsters the national industry, generates jobs, and promotes innovation. We are glad to support initiatives that enable Lithuanian manufacturers to stay competitive worldwide,” states Tadas Jonušauskas, SEB Bank AB board member and head of Corporate Banking.
The next generation paper machine PM7 is scheduled to be operational in the first half of 2028.
“We are constantly looking for innovative solutions, maintaining our leadership position and looking for the latest, high-end technologies. We are buying one of the fastest serial paper machines on the market, and our larger and more efficient production capacity will allow us not only to strengthen our position in strategic markets, but also to offer innovative and resource-efficient products,” said T. Jozonis.
Alessandro Mennucci, CEO of Toscotec, said that the company is pleased to have once again become a reliable partner in the PM7 project.
“After fifteen years of working together, we are proud to partner with Grigeo Group on this important project too. Our commitment remains strong: the customer is always at the heart of our mission, and we are delighted to be able to deliver on this vision of Grigeo Group with our innovative technology,” shared A. Mennucci.
The PM7 machine will have a paper web width of 5600 mm and a design speed of up to 2100 meters per minute, one of the best in the world, ensuring exceptional production efficiency and flexibility.
“What is particularly important is that, thanks to the advanced technology, the machine will allow a significant reduction in energy consumption, which, according to our estimates, will save around half a million euros annually and will significantly reduce GHG emissions per ton of paper produced,” noted T. Jozonis.
To fully exploit an increased paper production capacity, Grigeo Group will also invest in modern paper converting lines. Contracts have already been signed with 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 €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.
The Grigeo Group of companies to produce fiberboard, paperboard and tissue paper consists of Grigeo Hygiene, Grigeo Paper Packaging, Grigeo Tissue, Grigeo Klaipėda, Grigeo Packaging, Grigeo Baltwood, Grigeo Recycling, Grigeo Recycling (Latvia), Mena Pak (Ukraine) and Grigeo Tissue (Poland).
The group employs over 1,000 people. In 2024, Grigeo Group’s annual turnover reached €213 million, an increase of 9% from 2023. The Group’s EBITDA stood at €34.8 million. In 2024, Grigeo Group’s net profit was €20.9 million — €4.4 million less than 2023. According to the Group, the decline in profitability was due to rising prices in certain raw material categories.
