Saint-Gobain Packaging Sector expands in eastern Europe

Saint-Gobain“s Packaging Sector has recently acquired majority stakes in Ukraine-based Consumers Sklo Zorya and Russian companies Sitall and Kavminsteklo.
The acquisition of these glass packaging co…

Saint-Gobain“s Packaging Sector has recently acquired majority stakes in Ukraine-based Consumers Sklo Zorya and Russian companies Sitall and Kavminsteklo. The acquisition of these glass packaging companies, whose combined sales totaled EUR 69 million in 2004, is in line with the strategy being pursued by Saint-Gobain“s Packaging Sector in emerging countries. With this move, Saint-Gobain extends its network of complementary glassworks in strong growth markets. The French glass giant says the three glassworks will be able to offer their customers glass packaging that meets the most stringent technical requirements. Saint-Gobain“s Packaging Sector will oversee the ongoing development of these sites and will offer its Eastern European customers a local source of high-quality products bolstered by international best practices. The investments are being implemented in collaboration with the European Bank for Reconstruction and Development (EBRD), with which Saint-Gobain Packaging has established a partnership, giving the bank an option on a minority stake in each company. Sitall is a Russian glassworks specializing in premium packaging products. Based in Roslav, 400km (250 miles) southwest of Moscow, Sitall had sales of close to EUR 20 million in 2004. The manufacturing site already operates three furnaces producing bottles and a fourth furnace is currently being built, which will focus solely on manufacturing bottles for the perfume and cosmetics industries. Thanks to this acquisition, Saint-Gobain“s Packaging Sector says it is set to become the leading manufacturer of perfume bottles in Russia, with an extensive product range meeting the needs of both Russian and international customers based in the region. The Sector also aims to develop its manufacturing facility to produce, in particular, bottles for the premium spirits market. The Kavminsteklo glassworks is currently one of the top ten glass packaging manufacturers in Russia. Founded in 1898, the Kavminsteklo manufacturing plant is located in Mineralnye Vody, in the Stavropol region of the northern Caucasus, in a wine-producing region also renowned for its natural mineral water. The glassworks achieved total sales of EUR 26 million in 2004. The plant“s manufacturing facilities produce a range of 0.2-1.5l bottles in both clear and green glass, designed for all beverage markets. Consumers Sklo Zorya is located 320km (200 miles) west of Kiev in northwest Ukraine. The glass manufacturing plant achieved total sales of 23 million EUR in 2004 and produces bottles and jars, largely for the Ukrainian market. A leader in the manufacture of premium glass, the plant also produces customized containers for the liqueurs, soft-drinks and food sectors.