At the end of last year, the speciality paper manufacturer reported a net loss of nearly PLN 6.2m after it was hit by "very high prices of pulp and unfavourable foreign exchange rates".

The company also implemented further revenue stimulating initiatives including price increases for its products.

Michal Jarczynski, chief executive of Arctic Paper, said: "We expect that Arctic Paper Munkedals will meet its financial targets this year.

"The mill offers unique high-quality products. We are developing new product offers and the Munken brand is well recognised."

The company completed the purchase of Sweden's Grycksbo Paper Holding on 1 March last year.

Arctic Paper manufactures bulky book paper and graphic fine paper and it is listed on the Warsaw Stock Exchange.

The total production capacity of the group's four paper mills is 810,000 metric tonnes of paper per year.

Arctic Paper declined to comment.