SCA Sells Russian Box Plant to Smurfit Kappa

Smurfit Kappa has acquired SCA’s corrugated packaging plant in Kommunar, near St Petersburg in western Russia.
“The new plant will expand our footprint in Russia and will further strengthen our position in this region.  At the same time it will enable us to meet growing regional demand and expand our current offer to the market,” Pim Wareman, the formidable CEO Smurfit Kappa North-East Europe, Corrugated Division, said in a statement.
The acquisition will increase Smurfit Kappa’s corrugated capacity in Russia to 200 million m2 pa. They also own a 140 million m2 pa box plant in Vsevolzhsk, near St Petersburg. Both plants will be run by the Vsevolzhsk management team.
“Integration has started, and we are excited about the new addition,” Roberto Villaquiran, CEO of SKG Corrugated Division is reported to want to invest in additional opportunities in other parts of Russia.
For SCA’s part, a pattern is clearly discernable:
They’ve also sold their packaging businesses in North America and Asia.
They’ve sold their volume box plants in western Europe, although they have kept the lucrative added value businesses.
They’ve invested the released capital in the hygiene division, which they see as giving a better return on capital. Notably, they announced a £1.16 billion deal to acquire the tissue business from Georgia Pacific last month.

Posted Date: 05th Dec 2011