ZAO Stora Enso II

completed

ZAO Stora Enso Packaging (the company, formerly known as ZAO Pakenso) is the Russian subsidiary of Stora Enso Packaging Oy (the sponsor, previously Pakenso Oy), a Finnish paper packaging manufacturer. IFC provided a loan to company in 1999 for the construction of a corrugated box production facility in Balabanovo, 100 kilometers south-west of Moscow. The facility is now operational. In order to satisfy increasing demand for its product, the company is undertaking a US$14 million expansion (the project) to increase in the company''s production capacity from the current 70 million m2/year to 105 million m2/year. The project expansion entails production hall, raw material warehouse and office extension for the operation of new converting machines (die-cutters and printers), together with additional space for new production and sales personnel, laboratory, design and pre-production processes and more room for maintenance purposes.The project also includes some new investments into the electricity distribution, compressed air and waste handling system.