RICHMOND, Va., Nov. 10 /PRNewswire/ -- Fort James Corporation (NYSE: FJ)
announced today the official opening of its new tissue converting plant in
Ivanteevka, a town just outside Moscow. The plant has been operating in a
start-up mode since August. Earlier this year, James River Corporation
(NYSE: JR) announced that it had signed a long-term lease agreement for the
site, that it intended to relocate converting lines from other European
plants, and that the plant would be operational in the fall of 1997. Fort
James was created through the merger of James River Corporation and Fort
Howard Corporation in August 1997.
The decision to open a Russian converting plant followed several years of
market development activities. In 1994, the company began exporting tissue
products to Russia from its Finnish manufacturing facilities, and in 1995, the
company opened a Moscow sales office for the distribution of its Lotus brand
of towel and tissue products. This next step will not only increase Russian
sales volumes, but will allow Fort James to reduce transportation costs and to
adapt its products to better match local customer preferences.
Parent rolls of tissue, manufactured at Fort James's facility in Nokia,
Finland, will be sent to the new plant for converting into finished products.
The converting plant initially includes two bathroom tissue and two napkin
converting lines and employs approximately 35 people. The output from this
plant, combined with sales of other items sourced directly from the company's
other European plants, are expected to generate 10,000 tons per year of
incremental tissue sales in the next three to four years.
"The opening of this plant strengthens our position as the only
systematically operating tissue marketer in Russia," said John F. Lundgren,
president of the company's European Consumer Products Business. "This new
converting facility creates an added platform for serving a market with
enormous growth potential as per capita consumption rates and the economy
continue to grow."
Fort James is a major force in the European consumer products marketplace,
with a full line of towel and tissue products for both the at-home and away-
from-home markets. With current annual European sales of approximately
$1.8 billion, and 26 manufacturing locations in 12 countries, Fort James is
the second largest manufacturer and marketer of tissue and towel products in
Europe. Fort James has become a favorite with European consumers through
brands such as Lotus, Nouvelle, Tenderly, Colhogar and Kittensoft. Product
lines include bathroom and facial tissue, paper towels and tabletop products
for the foodservice industry. Fort James also produces store brands for
leading retailers across the Continent, and markets feminine hygiene products
and pharmacy supplies.
Fort James is a leading international consumer products company, serving
consumers both at home and away-from-home with bathroom and facial tissue,
paper towels, napkins, and cups and plates. The second largest worldwide
producer of tissue products, Fort James markets such popular brands as Quilted
Northern, Brawny, Dixie, Vanity Fair, Mardi Gras, Green Forest, Soft 'N Gentle
and So-Dri in North America and Lotus, Tenderly, Colhogar and Kittensoft in
Europe. Fort James also produces folding cartons for packaging food and
pharmaceuticals and communications papers such as printing, publishing and
office copy paper. With annual sales of approximately $7.3 billion, the
company has approximately 30,000 employees and more than 65 manufacturing
facilities in the U.S., Canada, 12 European countries and China.
Copies of today's news release, along with additional information on Fort
James, is available, at no charge, by calling (888) 526 3711. You may also
access the company's website at Internet address http://www.fortjames.com .
SOURCE Fort James Corporation
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CONTACT: Celeste Gunter, Financial, 804-649-4307, or Richard B. Elder, Media, 804-343-4785, both of Fort James Corporation
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