Segezha Group’s Russian packaging plants produced over 500 million pcs of paper packaging

December 14, 2016

In early December of 2016, “Segezha Packaging” LLC (Republic of Karelia, Segezha), affiliated to Segezha Group (Sistema JFSC), rolled off the record 500-millionth paper sack.

Segezha Group, taken industrywide, incorporates seven European paper packaging plants apart from Russian production assets, with annual output standing at 1.2 billion paper sacks.

- This is an important outcome of Segezha Group’s sustained strategy delivery in terms of capacity and output expansion of paper packaging, - stated Segezha Group CEO, Chairman of the Board, Sergey Pomelov. We are planning to invest circa 100 mln. Euro in paper packaging production up to 2020. By this time, Segezha Group will ramp up paper to sack conversion on the Russian market from 41% to 64% to gain the lead in Russia and come in second in Europe.   

Segezha hosted the solemn briefing on this landmark occasion. On behalf of the Group’s management, Sergey Pondar, Segezha Group Vice President, Head of Paper and Packaging Division congratulated “Segezha Packaging” employees.  

- Today’s record has not only plant-scale implication. Half a billion is a hefty figure, it’s epitome of shareholder’s confidence in the enterprise and living up to expectations. Through arduous operation, the plant earned its right for investments. Capital investment project for ramping up yield capacity involved increase in output of sophisticated sacks up to 537 million sacks annually, or by 30% above baseline. Today we overfulfil our targets. «Segezha packaging” acquired a new converting plant in Salsk yielding 90 mln sacks per year. Within the last two years, Segezha has had the most advanced machinery mounted additionally onsite. We can move towards a new record - 1 million sacks per year.

Sergey Pokusaev, Executive Director of “Segezha Packaging” LLC, thanked colleagues for efficient and dedicated service, and reminded, that in 2008 the plant produced 345 million sacks, which was a record-hitting performance. The 2015-output target was just as impressive – totaling nearly 425 million sacks. Investments coupled with shareholder’s trust- that of Sistema JFSC – yield new upturn, providing both for production ramp up and improvement of working conditions for employees.  

Industrial packaging nowadays is massively supplemented by consumer packaging production: commissioning of the new Triumph papermaking machine in 2016 has doubled the plant’s production yield of high-demand ecofriendly paper sacks and bags. From now on “Segezha Packaging” is set to produce up to 50 million pieces of such packaging annually.

The main consumers are retailers such as IKEA, Auchan, M-Video and others.

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Segezha Group is one of the largest Russian forest industry holdings with the vertically integrated structure and a full cycle of logging and added-value wood processing. The holding comprises Russian and European enterprises in the forest, wood processing and pulp and paper industries, as well as paper packaging. The geography of the Groups’s branches encompasses 12 countries. The production facilities are located in 8 countries, including 6 regions of the Russian Federation.  The company’s products are exported to 87 countries across the world. The staff headcount of Segezha Group totals 13.000 people.

Segezha Group is the largest forest user in the European part of Russia with the total area of forest lease of over 7 million hectares (MHA). 95% of products is certified. In 2016, the complex afforestation area will exceed 21,000 hectares.  Segezha Group ranks: № 1 in Russia (52%) and № 2 in Europe (16,5%) for paper sack production, № 1 in Russia (71%) and № 4 in Europe in terms of high-quality unbleached sack paper production , № 5 in Russia and the world’s № 7  for large-sized birch plywood production, № 1 in Russia for sawn timber production – 904 thousand cubic meters per year.