Timber holding Segezha Group, the leader in the production of industrial paper bags and lumber in Russia, has sold its European subsidiary, Segezha Packaging, which has consolidated seven factories in Europe. In this respect Wrote RBC referring to Mikhail Shamolin, Chairman of Segezha Group.
Answering a question from RBC, Shamolin did not disclose the amount of the transaction and other details. But he noted that the deal was “the market”.
Segezha Packaging facilities are located in Denmark, Netherlands, Germany, Czech Republic, Turkey, Romania and Italy and produce paper packaging. However, these businesses made up about 1% of the group’s OIBDA.
“… their total capacity is around 700 million paper bags per year. The capacity of all such businesses of the Segezha Group was about 1.6 billion bags per year…. 1.4 billion bags were produced last year, which means that after an agreement with European factories, the company’s production can be reduced by almost half, ”continues the material.
Segezha Group supplied paper to factories in Europe, where they manufacture bags and other packaging. However, since July last year, the European Union has banned the import of Russian timber products under the fifth package of sanctions.