Segezha Group expanding packaging production in Europe

Segezha Group has commenced a major investment project in Romania. The total investment under the project will be approximately EUR 10 million. Segezha initially announced the project in January.

As part of the project, the company has already begun building a new paper packaging workshop in the city of Ploiești. By mid-autumn, the plant will consist of a state-of-the-art production facility equipped with an all-new manufacturing line as well as a warehouse for finished products. Existing equipment will be undergoing an overhaul concurrently with new construction. The industrial launch is planned for the spring of 2022. The production capacity will increase by 60 million paper sacks to approximately 160 million paper sacks per year.

“Our investment programme will help Segezha Group expand its strategic presence in Europe. The new facility will meet the highest quality and safety standards. We will not just significantly increase our capacity, but enter new market segments as well. We continue to move ahead, sustaining the growth of our business and creating new jobs, even in the midst of a pandemic,” said Segezha Packaging CEO Rinat Stark.

Segezha Group manufactures paper packaging at facilities in Europe, Turkey, and Russia. Segezha Packaging assets, with a combined capacity of 720 million paper sacks per annum, are located in Germany, the Netherlands, Denmark, Italy, Romania, Czech Republic, and Turkey. In Russia, Segezha Group operates several packaging plants in the Republic of Karelia and Rostov Region, producing over 668 million paper sacks per annum.

Due to the advantageous geographic location of its converting facilities, Segezha Packaging can use strategic logistics routes to its markets in Europe, the Middle East, and North Africa. Russian business units of Segezha Packaging, in turn, meet the packaging needs of Russia and the former Soviet republics.

In 2020, Segezha Group produced 1.3 billion pieces of industrial and consumer packaging, showing a 2.3% growth compared to the year before. The Group ranks first in Russia and second globally in industrial paper packaging production. Segezha Group holds 63% of the Russian and 11.4% of the European paper sacks market. Leading manufacturers of cement, chemical and agricultural products as well as retailers are among the clients of Segezha Group.

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