Segezha Packaging LLC Branch in Rostov Region Produces 200 Millionth Paper Sack
On January 10, 2019, Segezha Packaging LLC Branch in Salsk, Rostov Region (part of Segezha Group, Sistema JSFC) produced the 200 millionth sack since the startup of the enterprise in 2016.
The paper packaging line in Salsk increased production volumes every year: in 2016 a total of 55 million pieces were produced, in 2017 – 65 million pieces, and in 2018 – almost 78 million of industrial sacks.
By the end of the year the output of various formats of grocery packets made of Segezha’s unbleached kraft paper reached 1.17 million pieces.
“As we launch the Triumph line, we will able to manufacture single-layer packets and paper bags with twisted handles, which are in considerable demand on the market,” Oleg Patrushin, Director for Production at Segezha Packaging LLC enterprise in Salsk, commented. “But when previously we acquired the ready cord for twisted handles, now we produce the said cord ourselves. In December we installed a new slitting and rewinding machine, and it’s been undergoing the commissioning process since January 10.”
According to Mr. Patrushin, this is not the only expected renewal of production capacities at the branch. In April 2019 the modernized industrial packaging line will allow the enterprise to expand its product offering. However, the most grandiose change is expected in September 2019 when we will receive the second new automated sack-making line. The line will be go into operation no later than in November.”
Alexey Sitnikov, Executive Director of LLC Segezha Packaging, said that overall during the past year the enterprises in Segezha and Salsk set new records in production and in sales. For example, in 2018 the converting assets of Segezha Group sold more than 590 million sacks to customers. To compare, the previous record had been set by LLC Segezha Packaging in 2016, when the company sold 542 million pieces of products during the calendar year.
The paper packaging assets of Segezha Group in Karelia, Rostov Region and Europe annually produce more than 1.2 billion units of ready products. The main effect on the business of packaging and its growth is contributed by modernization of Segezha PPM, and growing production of sacks. The company’s products are being used at almost every Russian plant that manufactures cement and dry construction mixtures. They are also in high demand among major retailers. The level of availability of own high-quality materials allows the brand of Segezha Group to control the cost of production of paper sacks and compete successfully with European manufacturers, not only on the market of Europe, Russia, and the CIS, but on the market beyond the FSU countries.
“It is no secret that paper packaging is ten times more environmentally friendly than the PET packaging,” said Mikhail Shamolin, President of Segezha Group. “In many countries use of plastic packaging is limited. This trend will invariably come to Russia, and we want to be ready for it. In our view, the demand of the market is around several hundred million pieces.
According to the head of the company, paper packaging is convenient in terms of consumer qualities, it is a part of the industrial cycle, and there seem to be no substitutions to it in terms of consumer properties and costs en masse, and there seem to be no such prospects in the future. “The global market is huge, and the players who will be able to provide the products to this market at competitive cost, will always make money,” Mikhail Shamolin said.
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