Grigeo Group AB, is investing more than EUR 106 million in the expansion of its tissue paper business, doubling its production to 140,000 tonnes per year. Over EUR 97 million will be used to modernize and expand the UAB Grigeo Tissue production plant in Grigiškės, Lithuania. Further, EUR 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.
Aug 27, 2025
Grigeo Group AB, is embarking on a record-breaking investment programme of more than EUR 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 EUR 97 million – will be used to modernize and expand the UAB Grigeo Tissue production plant in Grigiškės. A further EUR 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. The factory in Poland will be equipped with a new converting line for paper base and will invest in additional infrastructure.
According to Tomas Jozonis, CEO of Grigeo Group, the realization of this ambitious vision began on July 23th this year when a contract was signed with Toscotec S.p.A., a manufacturer owned by the Germany industrial giant Voith Group, for the acquisition of a new PM7 paper machine. The next generation paper machine PM7 is scheduled to be operational in the first half of 2028.
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“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.
According to him, 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 EUR 55.2 million for the development of the tissue paper business was granted by AB SEB Bank in Lithuania and EUR 6.5 million by Santander Bank Polska S.A. in Poland. EUR 44.3 million will be financed from the company’s own resources.
To fully exploit an increased paper production capacity, Grigeo Group will also invest in modern paper converting lines. Contracts have already been signed with the Swedish company 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.
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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 EUR 213 million, an increase of 9% from 2023. The Group’s EBITDA stood at EUR 34.8 million. In 2024, Grigeo Group’s net profit was EUR 20.9 million — EUR4.4 million less than 2023. According to the Group, the decline in profitability was due to rising prices in certain raw material categories.
