Segezha Packaging (“Segezha”) announced today the closure of its sack converting facility in Backa Palanka, Serbia. Segezha’s Balkan sales team will continue to serve our valued clients in the region with sacks produced in our other plants in Central Europe. The majority of production will be transferred to our recently expanded and modernized factories in Uvalno, Czech Republic and Ploiesti, Romania.

The closure is part of Segezha’s ongoing global efforts to consolidate production into larger, ultra-efficient factories. This strategy allows Segezha to offer our customers the highest quality products and services in the most cost effective manner possible.

Segezha, which is owned by Russia’s ILP Group, is the world’s second largest manufacturer of industrial paper sacks. It produces about 1.3 billion paper sacks annually in high-quality production facilities in ten countries, across Europe and Russia, and employs around 1500 people.

Jim Krawczyk
President, Emerging Markets Region
Segezha Packaging, December 2009