Segezha Packaging is to build a sack productoin plant in Saransk

In November this year Segezha Packaging announced the start of  construction of a sack production plant in Saransk in Central Russia. Segezha Packaging is part of Investlesprom Holding, a group which includes a range of forestry, wood processing and pulp & paper operations.

Production facilities for manufacture of 100 million sacks of cement and other building materials will start in May 2008.  The plant will be equipped with three production lines and a pre-printer from Windmöller & Hölscher.

The total investment volume of the project will be 750 million rubles. The plant’s estimated capacity will be 400 million sacks per year. The project will create 300 additional jobs.

- The location of the plant was not chosen by chance,— Daniel Matyukhin, general manager of Segezha Packaging for CIS, says. – The new operations will be situated in the very heart of “the cement belt” of Russia and CIS.  The production site will be located in Saransk, which is 500KM south-east of Moscow.  There is all necessary infrastructure here: heat and power supplies, local railways and good roads, water, gas supply and communications.  The production and management complex is in good condition. Selection of the site was determined by its proximity to key customers, and the available well-developed infrastructure, including transport. The investment project is supported by the Government of the Republic of Mordovia.

- According to Peter Buckley, CEO, Segezha Packaging Group, this investment is further evidence of our company’s strong intention to build on our position as one of the key players in the global paper sack industry.  This investment also consolidates our position as the market leader in the key Russia and CIS markets.