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AR Packaging to close two carton plants

Packaging company AR Packaging is to close two carton plants in Russia and Finland in a move which will affect 150 employees.

The company has initiated a review of the operational footprint of the group as part of its plan to grow further globally, as well as improve operations and cost efficiency.

As a result, the company will close one of its three facilities in Russia as “sales volume development does not justify three plants in the region at the same time as price pressure increases”. Following the closure of the A&R carton plant in Moscow, the group will serve the Russian market from its two plants in St. Petersburg and Timashevsk.

AR Packaging’s production in Kauttua, Finland, will also close, with volumes being relocated to other plants in the Nordic region. However, sales, customer service and product development functions will remain in Kauttua.

The closures will impact around 150 employees, but the company has said employment at other locations will be offered.

Despite the announcement, the company says investments are ongoing at several plants across Europe and include new equipment for improved efficiencies, as well as expansion of selected plants.

“AR Packaging has gained significant new business in targeted segments as set in our strategy,” says Harald Schulz, president and CEO of AR Packaging. “After a successful integration of the businesses acquired during latest years, we now take a holistic view on our footprint. Strong skill centres and further site specialisation through focused technology and know-how will increase the group’s ability to lead future developments while aligning presence to optimal locations.”

“We have a vast investment programme in place which includes for example four new printing machine installations during 2016-2018 as well as expansion of our plants in Krakow, Poland and Tabasalu, Estonia,” says Schulz. “It supports our ambitious growth plan in a very good way.”

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