Group of companies “Pulp Mill Holding” reports about conclusion of a deal of purchasing 100% shares of “EuroPack” - mill producing corrugated board and corrugated packing in Voronezh region (PE “Maslovskiy”, ul. Parkovaya, 1)
The transaction amount is not disclosed.
Asset of Pulp Mill Holding – “EuroPack”, LLC” – is registered in Voronezh, ul. Zemlyachki, 15, office 22.
Nowadays the mill of GC is at the final stage of construction and commissioning. As Mrs. Irina Galakhova, the Chief Operating Officer & Manager of business line “Corrugated packing” of “Arkhbum”, JSC, has explained that Voronezh asset of GC will be equipped by high-tech equipment of European and Japanese production that will allow to produce the products of high quality in accordance with the standards adopted in “Arkhbum”, JSC.
Mrs. Irina Galakhova has also informed that by the end of 2018 the mill will be put into operation and will produce finished products. The products similar to those produced on "Arkhbum", JSC in Podolsk and Istra district will be produced on the equipment of "EuroPack": 3 and 5-layer corrugated products - 4-valve corrugated boxes, boxes of rotary and flat-bed die-cutting.
Within a year after the mill became a property of Pulp Mill Holding, the shipment of the products will be carried out on behalf of “EuroPack”, LLC (PE “Maslovskiy”, ul. Parkovaya, 1). At the same time, Pulp Mill Holding will focus on the implementation of the re-equipping program of "EuroPack", JSC and will build the sales concept of the mill.
After this preparatory period “EuroPack” will be fully integrated into “Arkhbum”, JSC in 2020. And, thus, the corrugated products division of Pulp Mill Holding will include three sites - Podolsk, Istra and Voronezh branches of "Arkhbum".
Mr. Vladimir Krupchak, the member of the Board of Directors of “Arkhangelsk PPM”, JSC, commenting the deal, has emphasized that the main purpose of purchasing the asset in Voronezh is to expand processing facilities to the south of Russia - one of the main consumer centers of corrugated packaging in the country. He also noted that this asset is also profitable from the logistics point of view (the shipment distance is about 700 km) and the expected volumes of orders of the Russian south market.
"The purchasing of “EuroPack” gives the highest synergetic effect within our vertically integrated structure as the capacities of “Arkhangelsk PPM” in connection with the rebuilt of BM-2 are increased by 100 ths tons of board per year," said Mr.Vladimir Krupchak. "We are also increasing the processing volume in the Istra branch of “Arkhbum” JSC due to the start of the second line in 2019".
Thus, taking into account four processing centers (Podolsk, Istra-1, Istra-2 and Voronezh), "Arkhbum", JSC becomes the leader of the Russian Federation for the production of corrugated packaging with an annual capacity of 850 million m².