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The company was unable to maintain the operations of seven paper packaging plants in Germany, Denmark, the Netherlands, Italy, the Czech Republic, Turkey and Romania due to anti-Russian sanctions
“Transaction completed. They (the assets of Segezha Packaging) have been sold,” said Mikhail Shamolin, president of the company. He did not name the amount of the transaction and the new owner, but specified that the enterprises were sold at a market price.
“We could not supply these plants with paper due to sanctions restrictions,” he added. “On the other hand, the plants could not buy paper on the European market because the local producers refused to supply it, and the buyers refused to buy their products because the Russian company is the owner of the assets.”
For reference
Segezha Packaging was formerly Korsnäs Packaging owned by the Kinnevik AB Swedish investment company. In 2006, the asset was acquired by the Segezha Pulp and Paper Mill, the deal amounted to €73.5m. In 2014, Segezha Pulp and Paper Mill became part of Sistema Joint Stock Financial Corporation, and the timber holding formed by the corporation was later renamed Segezha Group.
Segezha Packaging enterprises account for about a quarter of all packaging and craft paper production capacities in Europe. The total capacity of these enterprises is 769 million paper bags per year. According to 2021 data, Segezha Packaging’s added OIBDA (operating income before depreciation) was €5-7m per year.
Prior to the introduction of European sanctions, paper for Segezha’s European plants was supplied from the group’s Russian fabrics. On April 8, 2022, the European Union included in the fifth package of sanctions against the Russian Federation a ban on the import of Russian wood, plywood, boards and pellets (the ban came into force on July 10, 2022). The eighth EU sanctions package, adopted in October 2022, banned the import of pulp and certain types of paper and cardboard from the Russian Federation.
Converting capacities of Segezha in Europe could be of interest to Mondi Group, International Paper, Metsä Group, etc.
gofro.expert
