Bong to start envelope production in Russia

Kristianstad 2005-10-13

For several years Bong has served the Russian envelope market via exports from Finland. Now, the company is taking the next step and setting up its own envelope manufacturing in Russia. Production will be based in Kaluga, some 200 km south of Moscow. The company has started to move envelope machines from other parts of the group for use in Russia and plans to expand production in pace with market growth. “Russia is a very interesting market for us. The country’s large population and fast-growing per capita envelope consumption offer significant potential,” says Anders Davidsson, CEO & President of Bong. “We have already established our Postac brand on the Russian market in collaboration with some major distributors. But in order to give our Russian customers better service and fully exploit growth in this market, it is vital that we also have a production presence here.” At present Bong has recruited a number of key staff, leased and prepared suitable facilities and is in the process of installing envelope machines. Costs of around SEK 3 million for the Russian venture have been charged against profit for 2005 to date, and Bong anticipates additional start-up costs in the range of SEK 1–2 million for the remainder of the year. Full-scale production is scheduled to start in the first half of 2006.

About Us

Bong is one of the leading providers of specialty packaging and envelope products in Europe and offers solutions for distribution and packaging of information, advertising materials and lightweight goods. Important growth areas in the Group are packaging within retail and e-commerce and the envelope market within Eastern Europe. The Group has annual sales of approximately SEK 2.1 billion and about 1,400 employees in 14 countries. Bong has strong market positions in most of the important markets in Europe and the Group sees interesting possibilities for continued development. Bong is a public limited company and its shares are listed on Nasdaq Stockholm (Small Cap).