Articles

Two minds inspired by the same idea

"Delovoy Peterburg" (Bonnier Business Press daily newspaper) issued an article about strategic alliance of Ekotek Group and VarioPak Ltd

"Delovoy Peterburg", #182(2014)
Issue date: 30.09.2005
Author: Darja Rujkova

Two film producers intend to occupy 70% of the market.

LENINGRAD REGION. VarioPak Ltd. and Ekotek Group, dealing with packaging, will construct manufacture to produce packaging film in Gorelovo. The planned joint investments are 48 million Euro.

The agreement implies integration in the fields of logistics and sales. Companies intend to occupy up to 70 % of domestic stretch film market (including packing for storage containers, printing Products etc.)

Double packaging

Ekotek Group was founded in 1997 on the base of private Russian companies EKOTEK Ltd., HL&P Ltd., and EKOTEK - PLUS Ltd. It produces and supplies film, packaging, labels, raw materials for food and printing industry, and VarioPak Ltd (53639)* delivers materials and equipment for packaging producers.

"We developed our business at the packaging market in parallel with VarioPak Ltd and independently boosted the consumer markets. At present time it is profitable for us to join these markets and extend the geography of our activity. We are ready to invest the project in Gorelovo", said Andrey Zagorsky, president of Ekotek Group.

As Yan Taraponov (838140)*, head of VarioPak Ltd., says, the companies estimate their activity at the domestic stretch film market in 35%, the capacity of which is about 80 000 tones per year and share of import is about 30%.

"In future import would be replaced by the Russian companies and they would share the market. Among them are such companies as "Regent" and "Lava", he marked.

Gorelovo's partners.

Manufacture is located on the base of Ekotek Group printing house in Gorelovo, Lomonosov region.

After starting the first stage of the project, to the end of 2006, the total output will reach 31 000 tones of stretch film per year and 12 000 tones of shrink film per year.

The second and third stages of the construction imply an increase of the film Products by 34 000 tones per year. When the project will be finished in 2010 the Products capacity will be 99 000 tones of the stretch film per year.

Yan Taraponov (838140)* and Andrey Zagorskiy (to the left) decided to ally to oust import from the growing Russian stretch film market.

There is an opinion

Alexander Zolotarev, head of sales department of Regent-stretch Ltd. (Regent Group) says:

"The share of stretch film import in Russian reduced last year from 65% to 25% and is continuing to decrease. We produce 14 000 tones of film per year and we intend to install in April 2006 one more line which will allow us to produce 23 000 tones of film per year and, thus, will increase our market share from 25% to 35%."