Ahlstrom Corp.’s plant in Windsor Locks won’t be affected by the parent company’s pending merger into Munksjo next year, a company official said Tuesday.
Both Ahlstrom and Munksjo are based in Finland.
Ahlstrom announced this month that it plans to be acquired by Munksjo, and Ahlstrom will be “dissolved” as a standalone company. The two companies said they have “complementary geographical footprints” — Munksjo has strong market positions in Europe and South America, and Ahlstrom is strong in Europe, North America, and Asia, they said.
The merger needs approvals from both companies’ shareholders as well as regulators, after antitrust reviews.
“At this stage our operations in the U.S.A., including our plant in Windsor Locks, will continue as before,” Ahlstrom spokesman Juho Erkheikki said.
Munksjo describes itself as a “world-leading manufacturer of advanced paper products,” including consumer-friendly packaging.
The company has 2,900 employees and 15 facilities located in France, Sweden, Germany, Italy, Spain, Brazil, and China.
Ahlstrom makes “fiber-based materials” used in products including filters, medical fabrics, wall coverings, tapes, and food and beverage packaging.
Ahlstrom has 3,300 employees in 22 countries. The company employs nearly 300 at the Windsor Locks operation, which it bought in 2000 after the 233-year-old Dexter Corp. went out of business. The facility makes material used in medical, beverage, automotive, and wall covering product manufacturing.
The merger is expected to create significant value for stockholders through coordinating the operations of the two companies, which often translates into job cuts.
The annual cost savings from the elimination of redundant operations are estimated to be roughly 35 million euros, or about $37.67 million dollars, the companies said.
The savings are expected to come mainly in general, administrative, and sales expenses, through a “focusing of central administration and a combination of administration for closely located sales offices and mills,” the companies said.
