Sonoco Alcore opened production of cardboard sleeves in Tula region

On March 14, Sonoco Alcore company opened the largest Russian plant for the production of spiral-wound cardboard sleeves. As Sonoco Alcore Russia director Maria Kyaune said in an interview to WhatWood, recycled cardboard for the production will be sourced from Sonoco enterprise in Karhula, Finland and from local manufacturers.

The enterprise is located in Schekino town, Tula region, on the territory of Pervomaysky industrial park, 200 km south of Moscow. This gives quick access to a large part of consumers in Russia and allows to reduce logistic costs.

The rated capacity of the factory is 17,000 tonnes of cardboard sleeves with a diameter from 50 to 600 mm. The mill will become Russia’s largest of its kind and most technically advanced production site of Sonoco Alcore in Europe. The company invested €3.2 million into this project. All products of the new factory are fully recyclable at end of life cycle.

Commenting on the launch of the mill, Karsten Kemmerling, Sales Director of Sonoco-Alcore in Europe, noted: “Russian market of cardboard sleeves is very attractive. Its volume is about 100,000 tonnes per year, while annual growth rate is 4%. In 2013, we managed to increase market share by more than 50% compared to 2012. Our plan is to strengthen positions as market leader in Russia and to increase our market share to 30% by 2016. Being ideally located, the new mill increases our production capacities and expands the range of offered products which will ultimately allow to achieve these goals.”

Kyaune notes that the general rise of recycled cardboard prices in the Russian market affects the company: “The price of recycled cardboard in Russia is growing considerably, while in the West it is stable, but the appreciation of Euro affects the imported cardboard price too”.

“Russia’s WTO accession contributed positively, because the import duty was reduced from 15% to 5%. The impact on our customers was diverse, but as for the pulp and paper industry, financially they stand firmly,” Kyaune concluded.

The company implements the strategy of placing production as close as possible to the markets: in 2012, Sonoco opened factories in Syktyvkar (Komi Republic, Russia) and Grunsfeld (Germany) and expanded production capacity in Gaziantep (Turkey).

Sonoco-Alcore manufactures products for paper and textile industries, for the production of polymer films and for construction. In Russia, the company owns production facilities in St. Petersburg, Syktyvkar and, from now on, in Schekino.