The pulp plant in Kostrzyn was built by the German group Phrix in the 30's of the 20th cent. and was localised at that time in Germany. Rayon bleached pulp production was started in 1938 with the output of 7 thousand tonnes and employment of approx. 300 people. The expansion and modernisation of the plant that followed raised production up to 20 thousand tonnes of cellulose annually in 1941. Soon, the 2 WW hindered the plant's operation and due to military actions the plant was to large extent destroyed. The pulp mill was dismantled in 1945.
The plant was reconstructed in the 50's. The first production line in Kostrzyńskie Zakłady Celulozowo-Papiernicze was put into service on 19 December 1958, and another one a year later. The 60's witnessed further expansion of the plant – a state-of-art paper mill and pulp bleachery facility was built. The first paper machine with the capacity of 38 thousand tonnes/yearly was put into operation in 1968. The manufacturing of uncoated wood-free paper started.
Another paper machine with the capacity of 40 thousand tonnes of unbleached paper annually was put into use a year later. Quantitative and qualitative production increase contributed to the development of paper processing and broadening of the array of products.
The heaviest reshuffles in the company took place in the 90's as a consequence of political shifts in Poland and the process of transition from the state-commanded economy to the market economy.
Hard financial standing and poor technical condition of the machinery park forced the company to seek funds for investments and modernisation. In 1990, Kostrzyńskie Zakłady Papiernicze (KP SA), which was a state-owned company was transformed into a single-shearer state company.
On 7 October 1993, the Minister of Proprietary Transformations sold 80% of KP SA's shares to the Swedish paper concern TREBRUK AB (new name Arctic Paper). Personnel received the remaining 20% of shares. The State Treasury was no longer the plant's owner.
The acquisition of Zakłady Papiernicze by TREBRUK AB (new name Arctic Paper) was the first stage of long-term investments aiming to improve the outdated paper complex and transform it into a modern, cost-effective and environmentally friendly plant producing high-quality paper.
The pulp mill was closed down in 1994, the Paper Processing Department was upgraded and a new water filtering facility was put into service. Production capacity was boosted after modernising paper machinery and in particular reconstructing the other paper machine in 1995.
The company's technical and technological modernisation was paralleled by the restructuring process. The goal of Arctic Paper was and is to manufacture high-quality paper and not to process paper. 17 separate business units have been formed within the area of the plant.
In Arctic Paper Kostrzyn S.A. they say that "the only thing that is constant is permanent changes". Thanks to such approach, the company improves its products and services' quality and meets the expectations of its most demanding Customers.
In 2003, after the merger of the Arctic Paper concern, the company's name was changed from Kostrzyn Paper S.A. to Arctic Paper Kostrzyn S.A.