Valmet's Strategic Moves: Expansion and Restructuring in the Global Market
May 28, 2025, 10:42 am
Location: Finland, Mainland Finland, Espoo
Employees: 10001+
Founded date: 1951
Total raised: $184.7M
Valmet is on the move. The Finnish company is expanding its footprint in Turkey while simultaneously restructuring its operations in Finland and Sweden. These two developments highlight Valmet's dual strategy: growth through innovation and efficiency through operational refinement.
On May 26, 2025, Valmet announced a significant contract with Lila Group, a prominent Turkish tissue manufacturer. This deal marks the supply of a fifth Advantage tissue production line to Lila Group’s new mill in Erzurum. The machine, dubbed TM 5, is set to enhance Lila Group's production capabilities, adding a capacity of 70,000 tons of tissue products annually. This expansion is not just about numbers; it symbolizes a robust partnership that has flourished over the years.
Valmet’s Advantage DCT 200 tissue line is a marvel of engineering. It boasts a width of 5.6 meters and a design speed of 2,200 meters per minute. The machine will come equipped with state-of-the-art technology, including a ViscoNip press and a Yankee Dryer. This combination ensures high efficiency and low energy consumption, a critical factor in today’s eco-conscious market.
Lila Group is no small player. Headquartered in Istanbul, it operates across various sectors, including tissue paper and Fast-Moving Consumer Goods (FMCG). The Corlu factory, where Valmet has already installed four Advantage lines, is poised to become the largest tissue manufacturing facility in Turkey and the broader MENA region. This expansion is a testament to Lila Group's ambition and Valmet's role as a key enabler in that journey.
But while Valmet is pushing forward in Turkey, it is also recalibrating its operations closer to home. On May 22, 2025, the company concluded change negotiations regarding its new operating model in Finland and Sweden. This shift aims to enhance customer service through a lifecycle approach and improve operational efficiency. The new model will take effect on July 1, 2025.
However, this restructuring comes at a cost. The negotiations resulted in the reduction of 325 roles in Finland and 108 in Sweden, all white-collar positions. The company is not stopping there; it plans to initiate further negotiations in Finland, affecting approximately 1,100 employees due to a decrease in workload. This dual approach of expansion and reduction reflects the complex nature of modern business.
Valmet’s workforce is substantial, with over 19,000 employees globally. In Finland, it employs around 6,600 people, while Sweden accounts for about 1,700. The company’s commitment to its employees is evident, but the necessity for efficiency often leads to tough decisions.
The juxtaposition of expansion in Turkey and restructuring in Finland and Sweden illustrates the balancing act that many global companies face. Growth in one region can sometimes necessitate cuts in another. Valmet is navigating these waters with a clear strategy, focusing on long-term sustainability and customer satisfaction.
The company’s history is rich, spanning over 225 years. This legacy of continuous improvement and innovation has positioned Valmet as a leader in process technologies, automation, and services for the pulp, paper, and energy industries. With net sales of approximately EUR 5.4 billion in 2024, Valmet is not just surviving; it is thriving.
The Advantage tissue line's launch in Turkey is a bold statement. It showcases Valmet's commitment to innovation and its ability to adapt to market demands. The extensive automation package included in the delivery will streamline operations, reduce waste, and enhance product quality. This is not just about making paper; it’s about making it smarter.
As Valmet continues to expand its global reach, it must also remain agile. The restructuring in Finland and Sweden is a necessary step to ensure that the company can compete effectively in a rapidly changing market. The focus on efficiency will allow Valmet to allocate resources more effectively, ultimately benefiting its customers.
In conclusion, Valmet is at a crossroads. The company is expanding its operations in Turkey while simultaneously restructuring its workforce in Finland and Sweden. This dual strategy reflects the complexities of modern business, where growth and efficiency must coexist. As Valmet moves forward, it will need to balance these competing priorities carefully. The future is bright, but it requires a steady hand and a clear vision. Valmet is poised to meet the challenges ahead, ensuring its place as a leader in the global market.
On May 26, 2025, Valmet announced a significant contract with Lila Group, a prominent Turkish tissue manufacturer. This deal marks the supply of a fifth Advantage tissue production line to Lila Group’s new mill in Erzurum. The machine, dubbed TM 5, is set to enhance Lila Group's production capabilities, adding a capacity of 70,000 tons of tissue products annually. This expansion is not just about numbers; it symbolizes a robust partnership that has flourished over the years.
Valmet’s Advantage DCT 200 tissue line is a marvel of engineering. It boasts a width of 5.6 meters and a design speed of 2,200 meters per minute. The machine will come equipped with state-of-the-art technology, including a ViscoNip press and a Yankee Dryer. This combination ensures high efficiency and low energy consumption, a critical factor in today’s eco-conscious market.
Lila Group is no small player. Headquartered in Istanbul, it operates across various sectors, including tissue paper and Fast-Moving Consumer Goods (FMCG). The Corlu factory, where Valmet has already installed four Advantage lines, is poised to become the largest tissue manufacturing facility in Turkey and the broader MENA region. This expansion is a testament to Lila Group's ambition and Valmet's role as a key enabler in that journey.
But while Valmet is pushing forward in Turkey, it is also recalibrating its operations closer to home. On May 22, 2025, the company concluded change negotiations regarding its new operating model in Finland and Sweden. This shift aims to enhance customer service through a lifecycle approach and improve operational efficiency. The new model will take effect on July 1, 2025.
However, this restructuring comes at a cost. The negotiations resulted in the reduction of 325 roles in Finland and 108 in Sweden, all white-collar positions. The company is not stopping there; it plans to initiate further negotiations in Finland, affecting approximately 1,100 employees due to a decrease in workload. This dual approach of expansion and reduction reflects the complex nature of modern business.
Valmet’s workforce is substantial, with over 19,000 employees globally. In Finland, it employs around 6,600 people, while Sweden accounts for about 1,700. The company’s commitment to its employees is evident, but the necessity for efficiency often leads to tough decisions.
The juxtaposition of expansion in Turkey and restructuring in Finland and Sweden illustrates the balancing act that many global companies face. Growth in one region can sometimes necessitate cuts in another. Valmet is navigating these waters with a clear strategy, focusing on long-term sustainability and customer satisfaction.
The company’s history is rich, spanning over 225 years. This legacy of continuous improvement and innovation has positioned Valmet as a leader in process technologies, automation, and services for the pulp, paper, and energy industries. With net sales of approximately EUR 5.4 billion in 2024, Valmet is not just surviving; it is thriving.
The Advantage tissue line's launch in Turkey is a bold statement. It showcases Valmet's commitment to innovation and its ability to adapt to market demands. The extensive automation package included in the delivery will streamline operations, reduce waste, and enhance product quality. This is not just about making paper; it’s about making it smarter.
As Valmet continues to expand its global reach, it must also remain agile. The restructuring in Finland and Sweden is a necessary step to ensure that the company can compete effectively in a rapidly changing market. The focus on efficiency will allow Valmet to allocate resources more effectively, ultimately benefiting its customers.
In conclusion, Valmet is at a crossroads. The company is expanding its operations in Turkey while simultaneously restructuring its workforce in Finland and Sweden. This dual strategy reflects the complexities of modern business, where growth and efficiency must coexist. As Valmet moves forward, it will need to balance these competing priorities carefully. The future is bright, but it requires a steady hand and a clear vision. Valmet is poised to meet the challenges ahead, ensuring its place as a leader in the global market.