The group of companies Pulp Mill Holding announces the conclusion of a transaction for the acquisition of 100% of the shares of OOO Evropak, a corrugated cardboard and corrugated packaging plant in the Voronezh Region (Maslovsky, 1st Parkovaya Street).
The amount of the transaction was not disclosed.
The asset of Pulp Mill Holding – OOO “Evropak” – is registered at the address Voronezh, Zemlyachki, 15, off.22.
At the moment the plant of the Group of Companies is in the final stage of construction and commissioning. Irina Galakhova, executive director and head of the business unit “Corrugated packaging” of ARHBUM, explained that the Group’s Voronezh asset will be equipped with high-tech equipment of European and Japanese production, which will allow production of the highest quality in accordance with the standards adopted by Arkhbum.
Irina Galakhova also informed that by the end of 2018 the plant will be put into operation and will start producing finished products. The equipment “Europeak” will produce products similar to those produced at the sites of JSC “Arkhbum” in Podolsk and Istra district: 3-and 5-layer corrugated products – 4-valve corrugated boxes, boxes of rotary and flat die-cutting. .
Within a year after the transfer of the asset to Pulp Mill Holding, the shipment of the products will be carried out on behalf of OOO Evropak (Maslovsky, 1st Parkovaya Street). At the same time, Pulp Mill Holding will focus on the implementation of the modernization program “Europeak” and the building of the sales concept of the enterprise.
After this transitional period in 2020, Europeak will be fully integrated into Arkhbum. And, thus, the corrugated divisions Pulp Mill Holding will include three sites – Podolsky, Istra and Voronezh branches “Arkhbum”.
Commenting on the transaction, a member of the Board of Directors of Arkhangelsk Pulp and Paper Mill, Vladimir Krupchak, stressed that the main purpose of acquiring an asset in Voronezh is to expand processing facilities for expansion to the south of Russia – one of the main consumer centers of corrugated packaging in the country. He also noted that from the point of view of logistics (the shoulder of delivery is about 700 km) and the projected volumes of orders of the market of the south of Russia, this asset is also profitable.
“Acquisition Europeak gives the highest synergetic effect within our vertically integrated structure, as the capacities of the Arkhangelsk Pulp and Paper Mill in connection with the modernization of KDM-2 are increased by 100 thousand tons of cardboard per year,” said Vladimir Krupchak. “We are also increasing the processing volume in the Istra branch of Arkhbum JSC due to the launch of the second phase in 2019”.
Thus, JSC “Arkhbum” taking into account four processing centers (Podolsk, Istra-1, Istra-2 and Voronezh) becomes the leader of the Russian Federation for the production of corrugated packaging with an annual capacity of 850 million m².