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AR Packaging to close plants in Russia, Finland
AR Packaging has a strategic plan built on three pillars: further growth in Europe in selected business segments, global expansion with selected packaging solutions and further improved operational excellence and cost-efficiency.
“We have a vast investment program in place which includes for example four new printing machine installations during 2016-2018 as well as expansion of our plants in Krakow, Poland, and Tabasalu, Estonia”, comments Harald Schulz, President and CEO.
Following the acquisition of the European operations of Mead Westvaco in 2015, AR Packaging operates three plants in Russia. Sales volume development does not justify three plants in the region at the same time as price pressure increases. Consequently capacity and infrastructure costs need to be reduced to meet the profitability demands for the Russian rotogravure operations.
The A&R Carton plant in Moscow, will be closed and the Group will serve the Russian market from its two plants in St. Petersburg and Timashevsk, each with focused technology, competence base and increased production capacities.
The AR Packaging Board has taken the decision to reallocate volumes to other plants in the Nordic region and close the Kauttua production. Sales, customer service and product development functions will remain in Kauttua.
The announced changes at the Russian and Finnish operations will have an impact on around 150 employees.
AR Packaging is one of Europe’s leading companies in the packaging sector.