History and Development

Another new era in the company’s history began on March 4, 2024, when Velvet CARE was acquired by the global investment company – Partners Group. New opportunities have opened up for us, also in the international arena. Together with the new investor, the company still focuses on dynamic business development and together with Partners Group we have set further ambitious goals!

In 2018, VLET Holdings S. a. r. l. (a subsidiary of Abris CEE Mid-Market Fund III LP, managed by Abris Capital Partners Ltd.) acquired a majority stake in Velvet CARE Sp. z o.o.

With the introduction of the new owner, another five-year development plan was launched as part of the Velvet CARE 2025 Strategy. Its objective is once again to double the turnover, introduce Velvet CARE to the group of companies with a turnover exceeding PLN 1 billion and achieve the position of a leader across the entire Central and Eastern Europe.

Between 2018 and 2020, three other new processing lines were installed in the Klucze plant; one of them, on account of the international situation related to the pandemic and the restrictions in movement, was assembled and successfully started-up by the Velvet CARE employees independently, with virtual support offered by its manufacturer.

A major step in the implementation of the development strategy of Velvet CARE was purchase of 100% shares of MORACELL, the largest manufacturer of paper hygiene products in Czech Republic, in March 2020. This was the moment that marked the start of the formation of the Velvet CARE Group – comprising two companies, Velvet CARE in Poland and Moracell in Czech Republic.

Another milestone in building the position of Velvet Care was the construction and start-up of the third tissue machine in the Klucze plant. The modern TM8 machine, with respect to the technical parameters similar to the prior one, TM7, was started up at the end of 2021. It allowed for a significant increase of the company’s production capacity and for an ambitious outlook on the future.

The year 2013 was the beginning of the company as we know it today – Velvet CARE was born! The company created as a result of a Management buyout by the Polish management team together with the Avallon MBO Fund II has an enormous capital of know-how and the ability to finance new investments. At the onset of its existence, Velvet CARE determined the direction of its strategic development, which started with an investment plan worth over PLN 250 million.
Initially, as much as PLN 60 million was invested in increasing the plant’s processing capacity. The equipment resources of the paper mill in Klucze have been expanded by five modern converting lines for the production of toilet paper, boxed and pocket tissues, Giga paper towels and wet wipes. The product range was expanded to include private label brands and products intended for the institutional market, the so-called AFH sector.
The most significant project for the plant began in 2016, with the decision to include the paper mill in Klucze in the Kraków Special Economic Zone. This was followed by the erection of a new distribution centre and the commissioning of a new paper machine. The new finished goods warehouse has the surface area of 21,000 m2 and can fit over 38,000 pallets and 16 loading stations. The MP7 machine, which was purchased under the project, is one of the largest and most technologically innovative paper making machines in Europe. It is efficient, fast, environmentally-friendly, and also enables the production of tissue paper of diverse parameters. MP7 started production in March 2018. As a result, within the first five years of operation of Velvet CARE, its turnover doubled, processing and manufacturing assumed the desired balance and employment numbers increased from 260 to nearly 600 people.

In 1996, the American corporation International Paper – the world’s largest producer of offset paper, became the main shareholder of Kluczewskie Zakłady Papiernicze S.A. The enterprise had no experience in the production and sale of paper hygiene products, so it hired an experienced Polish team, which in 1997 created and launched the Velvet brand. Soon after its first advertising campaigns, the brand became the leader in the hygiene product category, and it hasn’t left this top position to this day. The scented toilet paper, original choices of colours and embossing set the trends in the sector for many years to come.
In March 2003, the paper mill in Klucze became part of another American worldwide corporation company, this time Kimberly-Clark, one of the largest manufacturers of hygiene products in the world. The plant became the headquarters of the enterprise in Central and Eastern Europe, contributing from the know-how and experience of international experts.

In 1975, an incredibly modern piece of machinery was installed at the papermaking plant in Klucze. The device manufactured by Hobema made the production of high-quality toilet paper much more effective. However, the real breakthrough came in 1976, when the first Voith paper machine made in Austria was commissioned in Poland – with an annual production capacity of 20 tonnes. It was the first machine in Poland to produce cellulose tissue. Its commissioning enabled the plant to manufacture superior-quality products, such as paper handkerchiefs, paper towels and toilet paper. This determined the further course of the company’s development, which began to focus on the production of paper hygiene products.

In the 1980s, a large part of tissue paper production was exported (to England, Germany, Norway, Austria and even such exotic countries as the Canary Islands, Malta and Iceland). Profit was invested in the further expansion of the plant’s equipment resources. During that time, the paper mill was also provided with a biological wastewater treatment plant.

On 1 February 1991, the state-owned enterprise was transformed into a one-person state treasury company under the name of Kluczewskie Zakłady Papiernicze S.A.

During the war and in times of political turmoil, solidarity among the workers was of crucial importance. After the liberation of the factory in 1945, it was the former employees who repaired the damage with common effort. They also started up a power station that supplied energy to the factory and private homes in the surrounding area. Several months later, the paper mill was nationalised – its new owner was the Polish People’s Republic, with production gradually returning to normal. In the early 1950s, the plant in Klucze was given a new name: Jarosław Dąbrowski Cellulose and Paper Mill. The paper manufactured in Klucze was used to print the 12-volume Great Universal Encyclopedia PWN. Originally published in the 60s, various editions of this famous Polish encyclopedia are still proudly displayed on the shelves of many homes in Poland. Many generations of Poles also practised their first letters in characteristic exercise books with a multiplication table on the cover. These were also produced in Klucze.

During that time, the plant’s production profile was expanded to include hygiene products – the first production line for toilet paper was installed.

The year 1897 saw the launch of the paper mill in Klucze and the execution of investment plans of Ludwig Mauve. This engineer, entrepreneur and landowner wanted to conquer the market with his high-quality paper products. The factory was erected with the assistance and funds provided by his three partners, and the capital did not exceed 1000 roubles. Only one year after the construction of the first buildings, in 1898, the company commissioned its first paper machine and unveiled a sign carrying the official name of the plant – Kluczewska Fabryka Papieru (Paper Mill in Klucze). The plant specialised in the production of high-quality paper for printing, writing and also parchment paper.
Production was interrupted by the First World War, but the paper mill must have made a quick recovery, as in 1924 it was awarded a gold medal at an international exhibition in Paris. With the quality of the paper made in Klucze receiving recognition abroad, the company became an important player in the European market. In later years, the plant was systematically modernised using the latest available technologies to meet the growing demands of its customers.

After 1931, the factory’s products are given characteristic watermarks – of an elephant, swan and keys.