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Construction of a large corrugated cardboard plant in Voronezh.

Europack Ltd (Voronezh) has been already supplying cardboard packaging for more than three years. Major clients of the company are mainly enterprises from the Central Region of Russia.

Earlier this year the company management decided to build a new large factory for production for corrugated cardboard and packaging production. The main objective is to increase existing capacity, to improve the quality of output products and strengthening its present position in the region, which is one of the most prospective in Russia for its location (currently, there are several new industries under construction which are potential Europack's clients).

At the preparatory stage Europack acquired additional building land plots, laid a branch railway line directly to the production site, led a high pressure gas pipe and obtained additional energy quota.

There already exist several corrugated plants in the region, therefore the company management decided to focus on new high-performance equipment. Considering offers from various equipment suppliers, Europack experts has traveled abroad, visited major corrugated plants, gained experience and improved their qualifications.

In the end of April, 2006, Europack signed an equipment supply contract with Petromash-Service (St. Petersburg). The companies are bound by an old partnership: first deliveries of Europack's equipment were those from the banks of Neva River. Supply of new equipment and replacement will take place in parallel and not impact negatively on the overall work of the enterprise. Petromash-Service has already practiced such scheme of production modernization in various familiar enterprises.

Launch of the plant is scheduled for the first quarter of 2007. The productive capacity will be up to 90 million square meters corrugated packaging per year. There is equipment from Taiwan, Japan, Germany and China: a double-double facer (2200 mm format, capacity level of 250 m/min.), three flow lines for production of corrugated boxes, strapping, packaging and laboratory equipment. Within the framework of the project, Europack Ltd plans to open an own laboratory for quality determination of input raw materials and output products by August, 2006.

Total investment into modernization of existing production exceeds $23 million. Europack's management believes that the new production will not only strengthen the company's position in the region, but will also start supplying corrugated products to other regions of the country.