NEWS - Manufacturing

SBJ Staff Report

Nov 14, 2011 - Georgia-Pacific appears to have struck a deal to sell off its Europe, Middle East and Africa division, known as GP EMEA, to SCA.

Acceptance of the offer is subject to consultations with works councils where appropriate and to customary closing conditions, including regulatory clearances from competition authorities. The offered price is euro 1.32 billion ($1.8 billion).

The proposed transaction includes Georgia-Pacific's consumer and away-from-home tissue paper products and personal care businesses and manufacturing assets across Europe, including leading consumer brands as well as away-from-home and private label products developed, manufactured, marketed and sold by 5,000 employees.  EMEA produces products similar to those manufacturered in the Savannah area by GP.

In the proposed transaction, SCA has agreed to hire all current Georgia-Pacific EMEA employees.

According to Jim Hannan, CEO and president, Georgia-Pacific LLC, headquartered in Atlanta, "Georgia-Pacific employees in Europe have worked hard over the last few years to make significant improvements in the business. We believe SCA would be acquiring an excellent business with talented people."

Georgia-Pacific is one of the world's leading manufacturers and marketers of building products, tissue, packaging, paper, cellulose and related chemicals. The company employs more than 40,000 people at approximately 300 locations in North America, South America and Europe. 

EMEA’s headquarters are in Brussels, Belgium, with facilities spread across 12 more countries including Finland, France, Greece, Ireland, Italy, Netherlands, Romania, Russia, Slovakia, Spain, Turkey and the UK.  GP’s family of brands is number one, according to the company, whether it’s KittenSoft® towels in Ireland, or Colhogar® bath tissue in Spain.

Savannah’s Georgia Pacific plant in Rincon is led by Kelly Wolff, vice president manufacturing for Georgia-Pacific's Savannah River Mill, the largest tissue mill in the world.  

The mill employees approximately 1,200 people, running three-shifts, 24 hours a day, making bath tissue, paper towels and napkins. GP’s brand names include Angel Soft, Sparkle and Vanity Fair. Georgia Pacific also makes napkins for companies such as McDonald’s and rolls of paper used in commercial bathroom motion dispensers in Savannah.