Privately-owned US-based Koch Industries said it might sell a number of tissue manufacturing businesses it acquired last year as part of its $13bn takeover of Georgia-Pacific. The latter employs 160 people at a site in Finglas, where it makes products under brands such as KittenSoft. It also manufactures Raytex foil.

It is understood that the European subsidiaries are attracting interest from leveraged buyout companies and that Deutsche Bank is advising on the potential sale.

The Dublin operation reported a fall in sales last year as it came under increased market pressure and saw operating costs climb. It reported turnover of 63m and operating profit of just under 1.4m in 2005.

That compared to turnover of over 70m in 2004 when it posted operating profit of over 5m.

The company said the deterioration in profitability "resulted from an erosion in sales prices which occurred while costs were increasing" and added that the operation had experienced a reduction in its private label volume.

The results stated that it was introducing a price increase this year and that it expected to increase its private label business in 2006 and reduce overheads. The Irish division paid a dividend of 7m to its parent in 2004, but paid nothing last year.

The chief executive of Koch Industries, Charles Koch, is one of the wealthiest people in the US, with an estimated fortune of $12bn. The company is also involved in oil refining, engineering, chemicals and fertiliser.