Following the acquisition of the European operations of Mead Westvaco in 2015, AR Packaging operates three plants in Russia. Sales volume development does not justify three plants in the region at the same time as price pressure increases. Consequently capacity and infrastructure costs need to be reduced to meet the profitability demands for the Russian rotogravure operations. The A&R Carton plant in Moscow, will be closed and the Group will serve the Russian market from its two plants in St. Petersburg and Timashevsk, each with focused technology, competence base and increased production capacities.
To be competitive and profitable on the Nordic carton market the cost base needs to be substantially reduced and asset utilisation increased. Therefore, the AR Packaging board has in its meeting on 28th September taken the decision to reallocate volumes to other plants in the Nordic region and close the Kauttua production. Sales, customer service and product development functions will remain in Kauttua.