Bag-in-box specialist targets Russian market

By Guy Montague-Jones

- Last updated on GMT

Related tags: Ds smith, Russia

DS Smith has set up a Russian subsidiary that will enable bag-in-box specialist Rapak to develop its position in the region.

Rapak, a DS Smith business focused on bag-in-box packaging, said the opening of DS Smith Vostok OOO in Moscow will provide a platform for growth in Russia and the former Soviet Republics of the Commonwealth of Independent States (CIS).

The move to create a subsidiary in Russia follows the establishment of a Rapak sales office in the country back in 2007.

Market growth

Since then, Rapak said it has seen demand grow for bag-in-box packaging in Russia for applications such as wine, dairy, water, and soft drinks. Just recently the company has secured two major contracts in the wine and dairy industries.

Opening a subsidiary in Russia will enable Rapak to provide the necessary local support facilities for these new customers. The subsidiary will also allow local manufacturing and direct import as well as the ability to invoice in the local currency.

“We already have a secure foothold in Russia and we will now be able to fully exploit this, including through the wider CIS,”​ said Jean-Paul Roosendaal, sales and marketing director for liquid packaging and dispensing at DS Smith Plastics.

Mergers and acquisitions

Rapak is part of DS Smith Plastics, which is a division of DS Smith, a £2bn packaging and paper group. Rapak has grown over the last 10 years through a series of mergers and acquisitions giving the company a presence in the US, Europe, and Asia Pacific.

Most recently Rapak joined forces with Herti-M, a Bulgarian packaging specialist for the wine and food industry, in 2007. The creation of DS Smith Vostok OOO in Moscow follows on from this initial expansion into Eastern Europe and Russia.

Related topics: Markets, Emerging Markets

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