Of prime importance for Memel's business life was the cellulose industry which run a large plant in Memel-Schmelz with about 1000 employees. On November 15th 1898 the cellulose factory Memel got founded in Hanover with a capital stock of 800 000 marks and was registered in the commercial registers of Memel and Hanover in 1899. The ground-breaking ceremony in Memel was in the middle of May 1899, and the first loading of the digesters was on May 20th, 1900. The enterprise had expected to achieve a good profitability with that pulp mill due to its very favorable situation at the muzzle of the well wooded area of the Memel river, because the wood could cheaply be rafted to the factory and because its own quays were available for the cargo handling of the finished product - an advantage which the factories in Ragnit and Tilsit-Splitter didn't have. All dreams didn't come true initially. Different factors were to blame for it. One had built too large and too costly. The chemical department burned down on March 29th, 1900. The reconstruction delayed the completely implementing. The technological facilities had their teething problems and the workforce wasn't trained sufficiently yet. In 1901 the capital had to be increased by 450 000 marks. A capital consolidation with a ratio of 5 : 3 took place in 1902. Staff changes in the entrepreneurship didn't cause any upswing. The company in 1905 merged with the large Aschaffenburg cellulose and paper group. This consolidation enabled the development of Memel's plant together with suitable qualified employees to one of the most important cellulose enterprises of the continent. The separation of the Memelland made the formal secession from the Aschaffenburg mother company useful. A stock corporation for cellulose and stationery production in Memel purchased Memel's plant at a price of 6 million marks. The factory realty on which the highest chimney stack rose up in Memel with 101 m represents a property of 35 hectares. Six steam-boilers with 2400 sqm of heating surface delivered by two steam-driven engines 2000 hp and 2750 kw by two steam turbines. Eleven cellulose digesters, two long sieving machines, and a paper machine could produce while a 16-hour working time and full usage of the plants approx. 40 000 t of cellulose every year. The actual performance remained behind these maximum. Within the last few years before the first World War about 30 000 t were produced every year. During the war the performance decreased to 15 - 20 000 t, and increased at the separation time once more for 30 - 36 000 t of dry cellulose and 2000 t of paper. 200 - 220 000 cubic meters of wood were annually delivered to the plant by train, by own ships and by floats. Due to modernest stevedore devices these crowds could be handled effortlessly, also the vast amounts of 40 000 t of coal, 8000 t of pyrites, and 5000 t limestones which were needed every year. The brand had an excellent reputation on the world market. Since 1917 spirit was produced as a byproduct by extracting from the waste brine. This could be increased from 25 000 l at end of the war on 1 250 000 l in the thirties. It was partly raw spirit, partly rectifized spirit, the so-called sulfite spirit. The plant had an important economical significance for the Memelland. Sums of millions flowed to woodcutters, carters, raftsman, tugboat- and Boydack owners. The in 1924 under director Rieth employed 1000 workmen and 50 employees brought pay and salaries to the businesses of 4 million Lit per year.

			Unknown	photographer