Austrian packaging company invests in Russia
plant in St. Petersburg that will serve leading consumer industries
including the food and beverage sector.
Production currently runs on a single printing line including a fully equipped pre-print stage and hot foil stamping. Mayr-Melnof says that the production site has efficient infrastructure, well trained staff and therefore has high potential for further expansion in the short-term. Annual sales for the facility are planned to rise significantly over 2005 and 2006 to approximately €10 million.
Within an investment program of €8-10 million, Mayr-Melnhof will increase converting capacities at the St. Petersburg facility by installing more printing lines. The company says that the objective is to swiftly penetrate the Russian market, focusing on the production for the sharply increasing folding carton requirements of international consumer goods producers in all segments. The company added that the purchase price will not be disclosed and that the transaction will be finalised after approval of the relevant anti-trust authorities.
Only last month the company announced two other carton acquisitions in the central and eastern European region, saying it was to invest in folding carton facilities in both Romania and Poland.The company is also starting to tap into the rapid growth of the China market, having set up sales agencies in Guangzhou and Shanghai at the start of this year. "The enormous economic growth in the region and the increased consumer demand involving also a greater demand for cartonboard were major reasons for this strategic step", explained Franz Rappold, member of the management board at Mayr-Melnhof Karton at the time.
Mayr-Melhof Group is the leading production of recycled cartonboard world wide. It comprises a carton packaging, carton board division and a cigarette and confectionery packaging division. The St. Petersburg facility is the company's first in Russia, but elsewhere in the region it also has production sites in both Slovenia and Bulgaria. On top of the domestic market, the company also has production sites in Holland, Switzerland and Germany which all contributed to a €1.32 billion turnover.
