Segezha Packaging continues setting a series of records

Segezha Packaging LLC, one of the key assets of Segezha Group (part of Sistema JSFC) in Karelia, which produces paper packaging, has established a new record of 2018, now in the segment of consumer packaging.

On November 22, 2018 the production of ready products – bags and packets made of kraft paper produced at Segezha PPM in Karelia with the help of Triumph 5 QT SK bag-making machines reached the figure of 42 million pieces. To compare: in 2017 both Triumph machines in Segezha produced 34 million pieces of packaging, and in 2016 – 29 million.

The day before, on November 21, 2018 the company delivered its 543 millionth sack on the market, beating the “historic high” of 2016, when the company sold 542 million pieces of products. 

According to representatives of the commercial service at Segezha Packaging LLC, the success was based on effective analysis and forecasting of the situation on the market, balanced and well-informed positioning of products, and optimization of sales by channels and markets. One of the main reasons for growing production and sales of consumer packaging are, professionals say, changing consumer preferences. Consumers are becoming more ecologically conscious and choose paper bags instead of plastic.

The European market of consumer paper packaging is in more beneficial conditions, first and foremost due to legislative limitations on the turnover of polymer packaging; in other aspects the European and Russian markets are experiencing similar trends.

“It is no secret that paper packaging is times more environmentally-friendly than PPT, which takes hundreds of years to decompose,” President of Segezha Group Mikhail Shamolin said at the opening of the Triumph Line in Salsky Branch of Segezha Packaging. “In many countries of the world the use of plastic packaging has already been disallowed. The same trend will inevitably come to Russia. We want to be ready for this. According to our estimates, the market demand is hundreds of millions. And total demand, if we include plastic packaging, in Russia is far beyond a billion pieces.”

Specialists of Segezha Group who work in packaging sales, say that the growing demand has to do not only with better ecological consciousness of the population but the improved look of the paper bag. The paper bag looks better than the polymer bag in segments where it comes into direct contact with food or food products. In electronic sales and delivery it underscores the premium class of the commodity being delivered.

The paper packaging assets of Segezha Group in Karelia, Rostov Region and Europe annually produce more than 1.2 billion units of ready products. The main effect on the business of packaging and its growth is contributed by modernization of Segezha PPM, and growing production of sacks. The company’s products are being used at almost every Russian plant that manufactures cement and dry construction mixtures. They are also in high demand among major retailers, such as IKEA, Auchan, Pyaterochka, Azbuka Vkusa and others. The level of availability of own high-quality materials allows the brand of Segezha Group to control the cost of production of paper sacks and compete successfully with European manufacturers, not only on the market of Europe, Russia, and the CIS, but on the market beyond the FSU countries.