A&R Carton St.Petersburg

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The proposed project envisages financing ZAO AR Carton, a Russian closed joint stock company owned by A&R Carton Holding GmbH which is owned by A&R Carton AB (Sweden), one of the leading companies in the European folding carton converting industry. The financing is needed to expand the company’s new folding carton converting plant located in Leningrad region (Russia). Given A&R Carton AB experience, the new plant will contribute to the modernisation of the carton packaging industry by dispersing know-how and setting technological, environmental, managerial and general business standards. The project will strengthen the competitive pressures within the packaging industry in terms of efficiency, product quality and delivery and will gradually broaden its local supplier base. The introduction of high-quality gravure packaging products is expected to stimulate local producers to utilise resources more efficiently, introduce more innovative production processes and should also increase customer awareness of international standards with respect to product quality and production processes. A&R Carton AB is one of the leading companies in the European folding carton converting industry. A&R Carton AB sales totalled EUR 281 million in 2005. The company has 15 strategically sited production facilities throughout the West-East and Nordic regions of Europe. The company has a converting capacity in excess of 240000 tons of carton board, and some 1,800 employees. The EBRD would provide financing up to EUR 9 million in the form of senior loan. EUR 15.9 million. The environmental due diligence undertaken by the EBRD confirmed that there are no significant issues associated with the operation. The plant has been designed to meet Russia and EU environmental standards and to incorporate adequate mitigation measures. A&R Carton is committed to monitor and manage environmental and safety issues in accordance with EU standards and best international industry practice. None. Niclas Nyström, Vice-President, CFO Niclas.Nystrom@ar-carton.com