The Slovenian paper tissue maker Paloma has concluded a seven-year investment cycle under the ownership of the Slovak group SHP by inaugurating new facilities worth €138 million as more investments are planned.

Investments as part of the Motion project include two new production lines, a facility for fast palletisation, and an automated high-bay warehouse for finished products.

The new automated warehouse, which required the demolition of part of the old buildings and construction of new buildings, has ten storeys and features 24,760 pallet spots.

It enables efficient transportation without bottlenecks and full traceability of pallets, which results in lower operating costs of storage and internal logistics.

The new facilities in Sladki Vrh in the northeast of the country were inaugurated at a high-profile ceremony on 4 June attended by representatives of the Slovak owners and Slovenian government officials.

The government has provided an €8 million incentive for the investment with government officials lauding SHP as an excellent, strategic owner, who turned around what used to be a struggling company.

"Paloma has become one of the most modern factories in Europe with a high added value, higher than the Slovenian average," Prime Minister Robert Golob said.

He said Paloma was proof of the benefits of investing in digital transformation and green breakthrough, praising the investor for carrying out the planned investments despite the energy crisis and the Covid pandemic.

Milan Filo, the president of the Czech holding company Eco Investment, which owns the SHP group, said the investment in Paloma provided the Sladki Vrh location with long-term prospects.

SHP chairman Richard Žigmund announced further investments; an €11 million line for tissues boxes is under construction, and is set to start operating in 2025. Investments to increase energy efficiency are planned for 2026 and 2027.

The current full capacity of Paloma's production lines is 80,000 tonnes of products a year, but Žigmund admitted that the facilities had not been used in full last year.

The company posted €130 million in revenue in 2023, 10% more than the year before, and €10 million in earnings before interest, taxes, depreciation and amortisation (EBITDA).

Having a 150-year tradition, Paloma has been part of the SHP Group since 2017. It produces toilet paper, paper towels, tissues and napkins.