Sveza Group acquires new assets in the paper-making segment

Sveza continues to increase its presence in the paper and paperboard market. Following the acquisition of Kama, Russia’s only producer of folding box board (FBB) and lightweight coated paper (LWC), the company acquires printed boxes and specialized paper production assets.

The scope of the transaction includes three production sites. Two sites — MMPOF Packaging specializing in paperboard packaging for FMCG products, including food and hygiene products; and MMPOF Rotogravure, a producer of paperboard packaging for the tobacco industry — are located in the Leningrad Region. The third site — Nevskiye Grani — specializes in tipping paper for the tobacco industry and is located in Pskov.

The transaction has been approved by the Russian Federal Anti-Monopoly Service, and the records have been updated in the Russian Unified State Register of Legal Entities The new assets have officially become part of Sveza’s organization. The details of the acquisition are not disclosed.

Sveza-Les CEO Anatoly Frishman describes the transaction as part of Sveza’s strategy to diversify business and increase presence in the paper and paperboard markets, and expects significant synergies from bringing together the new assets and the earlier acquired assets of Kama Pulp and Paper mill.

“Last year, Sveza entered the paper and paperboard market through a successful acquisition of Kama paper production assets in the Perm Region. Today, we are making another acquisition that increases our range of packaging products and strengthens our position in the market. The companies acquired by Sveza use modern process equipment, employ teams of experienced professionals, and have long-standing customer bases. We expect to achieve a significant efficiency increase across the Group through implementing best practices and optimizing logistics chains. All of this will ultimately benefit the entire Russian forest industry,” he says