Stora Enso expands corrugated packaging business in Eastern Europe/Russia
March 7, 2007 (Press Release) - Stora Enso today announced that it will expand its corrugated packaging business in Eastern Europe and Russia by constructing new plants at Balabanovo in Russia and Komarom in Hungary, and by expanding the existing plant at Lodz in Poland.
Stora Enso will build an offset printed micro-flute packaging plant at Balabanovo in Russia. Demand for offset printed corrugated packaging is increasing briskly in Russia. Stora Enso's aim is to expand the strong position the Group has established in the market. With this investment, Stora Enso will be the first foreign packaging group to invest in modern offset printed corrugated packaging production in Russia. The plant will be built at the existing Balabanovo site to benefit from synergies. The investment in the Balabanovo plant will be approximately EUR 23 million. The project will start in the second quarter of 2007 and is scheduled to be completed in the second quarter of 2008.
Stora Enso will also build an offset printed micro-flute packaging plant at Komarom in Hungary. Instead of expanding the current site at Paty, a new plant will be built at Komarom closer to a key customer, to further enhance service levels. The investment in the Komarom plant will be approximately EUR 15 million. The project will start in the first quarter of 2008 and is scheduled to be completed in the third quarter of 2008.
Offset printed corrugated packaging products are used in consumer packaging for the electronics, food and beverage industries.
Stora Enso will establish heavy-duty box production capacity at Lodz in Poland. This investment responds to customer needs by offering new types of product to the Polish market. The new production unit will strengthen the Group's position and coverage as a supplier of value-added products. The investment in the new plant will be approximately EUR 8 million. The project is scheduled to be completed in the first quarter of 2008.
SOURCE: Stora Enso