AR Packaging decreases its production in Russia and Finland


AR Packaging, one of the European leading companies in the field of packaging, has set out a strategic plan based on three pillars: further growth in Europe in selected sectors, global expansion with specific packaging solutions and improvement of operational excellency and cost efficiency. «We have a far-reaching investment programme, which for example includes four new printing installations in the 2016-2018 two-year period, as well as the growth of our plants in Cracow, Poland, and Tabasalu, Estonia», says AR Packaging President and CEO Harald Schulz (picture).

After the acquisition of the European operations of Mead Westvaco in 2015, AR Packaging is currently running three plants in Russia. In spite the growth plan described above, however, the evolution of the sales volumes does not just the presence of three installations in the region in the very moment, in which price pressure is on the rise. As a consequence, production and infrastructural costs will be cut to meet the needs in terms of profitability. The A & R Carton plant in Moscow will therefore be closed and the Group serving the Russian market from its plants in Saint Petersburg and Timashevsk, each and anyone of them with its focussed technology, a solid knowledge base and an increased production capacity.

To be competitive and profitable on the Nordic market, furthermore, costs have to be drastically reduced and the use of assets must be increased. During the meeting held on 28th September last, therefore, the AR Packaging group has therefore decided to reassign production volumes to other plants in the Nordic area and shut down production in Kauttua, in Finland. The Kauttua plant will maintain its sales, customer service and product development departments. The announced changes to the Russian and Finnish operations will have repercussions on about 150 employees. The company will do its best to offer them new positions.