The corrugated board mill operated by the Stora Enso Oyj subsidiary Pakenso Oy was officially opened today at Balabanovo, Russia. Officiating at the ceremony were Finland’s Minister of Foreign Trade Kimmo Sasi and Russia’s Deputy Minister of Economy Boris Masliy.
The Balabanovo mill went into operation in September 1998. With its one corrugated board machine and four converting lines it has a capacity of 90 million square metres of corrugated board a year. At present the mill employs 100 people, but this number will double when three-shift working is introduced. The cost of the Balabanovo investment was around USD 40 million.
The market prospects for the Balabanovo mill are good. Demand for corrugated board is increasing as imports, notably of food, decline and a higher proportion of products are made and packed in Russia.
Balabanovo is situated in the Kaluga region 106 km south-west of Moscow. The choice of location was influenced by the fact that this area has attracted plenty of capital and, in particular, investment by the food industry.
Pakenso Oy handles Stora Enso’s packaging operations. It has industrial plants in Finland, Estonia, Latvia, Russia and Sweden. Production in Lithuania and Poland is due to start this summer. In 1998, Pakenso had sales of FIM 1.5 billion and a workforce of roughly 1,700.
For more information contact Markku Pentikäinen, tel. +358 2046 27403
