ZAO Stora Enso II

completed

ZAO Stora Enso Packaging is a Russian subsidiary of Stora Enso Packaging OY. The existing company management has proven fully capable in the fast developing Russian corrugated board market, and has emerged as a market leader. This is due mainly to the sponsor, which has extensive experience in corrugated board manufacturing and has extensive experience in Central and Eastern Europe. In order to satisfy increasing demand for its product, the company is undertaking an expansion. The project foresees an increase in the company''s production capacity from current 70 million sqm/year (33, 390 mt/year) to 105 million sqm/year (50, 085 mt/year).IFC''s role in this project is to provide continued, substantive support to its client in an uncertain environment and mitigate political risk.The project will enhance the positive demonstration effect for local businesses that ZAO Stora Enso has already achieved through their best practice production and environmental practices. IFC estimates that as a result of the expansion, ZAO Stora Enso, located in Moscow''s poorer neighboring region, Kaluga, will increase its workforce by an additional 90 people, to a total of 240 people by the end of 2002 (the Company employed 150 people at FYE 2000). Indirectly, the local business community will greatly benefit from the project as a nucleus of regional development. It will also help create jobs and improve infrastructure in many key upstream and downstream businesses.