Metsä Tissue Inaugurates Expanded Tissue Mill in Mariestad
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Metsä Tissue, the tissue division of Metsä Group, has completed the expansion and modernization of its tissue mill in Mariestad, Sweden, and officially inaugurated the facility on May 26. The company reports that the investment volume for the project was €370 million.
The paper mill in Mariestad has been equipped with a new tissue machine and three new processing lines. The new tissue machine is intended to produce tissue products for the Lambi, Serla, and Katrin brands, among others. According to the company, the modernization doubles the mill’s production capacity to approximately 145,000 tons per year. With this expansion, Metsä Tissue aims to strengthen its position in the European tissue market and secure supply to the Scandinavian markets. “By strengthening local production, we are improving availability, reducing risks in the supply chains, and supporting our customers throughout Scandinavia,” explains Sari Pajari-Sederholm, CEO of Metsä Tissue. According to earlier statements from the company, the new plant technology is expected to reduce the site’s water consumption by 50% to 10 m3/t. The expansion of the factory is expected to create 100 new jobs at the site.
The expanded and modernized plant began operations in the fall of 2025 and is now fully operational. It produces hygiene papers for household use as well as professional hygiene solutions. Despite price pressures, the company’s tissue division showed stable performance in the first quarter of 2026.
Metsä Group employs 8,770 people worldwide, 2,400 of whom work at Metsä Tissue. In the 2025 fiscal year, Metsä Group generated revenue of €5.83 billion, of which €1.1 billion was generated by the Metsä Tissue division. In the same year, Metsä Tissue produced 526,000 tons of tissue paper.
