Nordenia expands packaging plant for Russian confectionery market

By Lindsey Partos

- Last updated on GMT

Related tags: Confectionery market, Russia, Packaging, Pallet

Keeping pace with the burgeoning Russian confectionery market, flexible packaging firm Nordenia has injected about €25m into its Russian plant.

"The Eastern European packaging markets harbour numerous strong-growth fields, such as in the food industry and the confectionery market,”​ said Ralph Landwehr, chairman of Nordenia.

Using a €12.5m slice of investment, the company recently unveiled a new production building and warehouse at its Nordenia Slavnika Pereslavl site. Planned for November 2010, the packaging company – which also has production sites in Poland and Hungary –will invest further in setting up printing and lamination machines at the site.

Tempted by double-digit growth, the Russian confectionery market is proving to be an attractive investment for confectionery players. The Russian chocolate confectionery market alone is expected to grow annually, on average, by a hefty 15.3 per cent in value and 5.4 per cent in volume between 2007 and 2012, according to data from market researchers Euromonitor.

These healthy figures shadow the diminutive 2 to 3 per cent growth rate for the global chocolate market.

Mirroring the same pattern as China and India, with a rise in consumer spending power comes an increased desire for consumer goods. According to investment bank Lehman Brothers, in 2002 Russians earned about $160 per month; today that figure is in the region of $540.

Russia's middle class is expanding rapidly, driving growth across the consumer goods market, and in terms of confectionery, a sparkling 15.3 growth for chocolate.

"The consumers in Russia in particular have growing requirements with regard to the presentation of goods, which is why interest in innovative packaging materials is very strong,"​ added Landwehr.

According to Nordenia, its site in Pereslavl-Zalesskiy near Moscow is equipped with a Windmoeller & Hoelscher Novoflex CL ten-colour flexo press, a Nordmeccanica laminating machine, plus a slitter that operates at 800 metres per minute.

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