Segezha Group sold its European assets that produce paper packaging

Segezha Group closed the deal on selling Segezha Packaging, the enterprise that produces paper packaging in Europe, Mikhail Shamolin, President, told journalists on March 31, 2023. The transaction amount is not disclosed.

Segezha Packaging includes seven plants producing paper sacks and bags in Germany, Denmark, the Netherlands, Italy, the Czech Republic, Turkey, and Romania. The combined capacity of the Group’s European plants is 769 million paper bags per year. Before the European sanctions were imposed, paper for the production used to be supplied from Segezha Group’s Russian enterprises.

Mikhail Shamolin explained that the assets were sold because of the anti-Russian sanctions. After they were imposed, the company was no longer able to maintain the operation of its European business. The eighth package of EU sanctions adopted in October 2022 bans the import of wood pulp and certain types of paper and cardboard from Russia.