MOSCOW (MRC) -- Huhtamaki, the Finnish-based consumer packaging specialist with worldwide operations, will build a moulded fibre egg packaging unit adjacent to its existing packaging facility in the greater Moscow area, according to FoodProduction.
The investment into the new project will make EUR5 million, and the unit is scheduled to start commercial production by the end of 2003.
Employing the company's proprietary Leotech moulded fibre technology, the new facility will bring modern, high quality egg packaging to the rapidly growing Russian supermarket sector.
"The Russian food retail business grew by a double-digit figure last year, and much of this is concentrated around Moscow and other major cities in western Russia," said Hannu Kottonen, Huhtamaki's division president for the Fresh Foods business.
"Because we are building this new operation at the same site as our rigid packaging plant, we will be able to enjoy a variety of economies of scale. The established Ivanteevka operation will provide shared infrastructure and logistical benefits, thus delivering value sooner than a typical green-field project," Kottonen added.
The new unit will concentrate on a narrow range of high-volume premium egg packaging, with complementary products sourced from other Huhtamaki units and technology licensees. This supply network enables the company to start sales and deliveries while the new unit is still under construction. The company already has a specialised fresh foods sales force in Russia.
We remind that, as MRC informed previously, earlier this year, Huhtamaki Oyj's subsidiary Huhtamaki, Inc. has purchased a manufacturing facility in Batavia,Ohio, in the United States to set up a new state of the art manufacturing and distribution unit. With the purchase Huhtamaki continues its series of investments in expanding and strengthening its disposable product offering and capability in the United States.
MRC