Russian Segezha Group closed a deal to sell its paper packaging plants in Europe, according to Mikhail Shamolin, the president of Segezha. He did not disclose the price of the transaction and the new owner of the plants.
The president of Segezha explained that the assets were sold due to the fact that against the backdrop of anti-Russian sanctions, the company could not support their operations.
Segezha could not supply European plants with sack paper due to sanctions restrictions. “On the other hand, these enterprises could not buy paper on the European market, because the manufacturers refused to supply them with it, and customers refused to buy products, due to the fact that the assets are owned by a Russian company.”
Segezha Packaging owned seven paper packaging plants located in Germany, Denmark, the Netherlands, Italy, the Czech Republic, Turkey and Romania.
Segezhsky packaging mill (later became the part of Segezha Group) acquired Korsnas Packaging for Euro 73.5 million in 2005. At that time, Korsnas was the Europe's second largest manufacturer of industrial paper sacks. It produced about 850 million paper sacks annually in nine countries. Korsnas Packaging had an annual turnover of approximately SEK 1,200 million (Euro 127.3 million).
