Segezha Packaging overstepped 500 million sacks output in Russia

Segezha Group informed that its Russian sack production sites boosted FP production by 27% at year-end 2016.

In 2016, Segezha Packaging LLC for the first time since the company’s foundation overstepped its record – 500 million sacks p.a. Segezha Group’s total annual output including Russia and overseas is over 1.3 billion of paper sacks. High production performance was shown by Segezha packaging’s units in the Republic of Karelia (Segezha) and in the Rostov Region (Salsk).

Sergey Pokusaev, CEO Segezha Packaging Russia & CIS, commented:

“This has resulted from well-managed operation secured through input of new capacities and 13% cutback on process down-time, coupled with successful commercial block’s cooperation with partners of the Group. Production rampup has fed into added-value wood conversion of extra 11,000 t of Russian paper.”

According to the announcement, the Russian paper sacks consumption in 2016 amounted to over 800 mln. sacks. (+2% vs.2015). The main consumers of sacks are construction materials producers – those of cement and dry mixtures. The product portfolio of Segezha Group meets market requirements – over 70% of paper packaging accrues to construction industry. In this segment, import substitution and CIS market development will bring about output increase in 2017.

Segezha Group ranks: No. 1 in Russia (52%) and No. 2 in Europe (16,5%) for paper sack production.

Earlier Segezha Group appointed a new CEO and Chairman of the Management Board.

About Segezha Group:

The company is one of the largest Russian forest industry holdings with the vertically integrated structure and a full cycle of logging and added-value wood processing. The holding comprises Russian and European enterprises in the forest, wood processing and pulp and paper industries, as well as paper packaging.  Segezha is ranked: No. 1 in Russia (52%) and No, 2 in Europe (16,5%) for paper sack production, No. 1 in Russia (71%) and No. 4 in Europe in terms of high-quality unbleached sack paper production , No. 5 in Russia and the world’s No. 7 for large-sized birch plywood production, No. 1 in Russia for sawn timber production – 904 thousand cubic meters per year, and No. 1 in Russia for glulam house sets – the volume stands at 25,5 thousand cubic meters per year.

Source: Woodbizforum