W.R. Grace & Co.'s Russian flexible packaging joint venture plans to add a second coextrusion line at its Volgograd plant by the end of 1994, according to Grace spokesman Chuck Suits. A/O Grace Kaustik now operates one coextruded film line and 20 monolayer blown film lines at Volgograd.
Grace Kaustik began production in late summer to supply its first fresh-meat customer, McDonald's Moscow, Suits said in a telephone interview from Grace's Boca Raton, Fla., office.
The joint venture sold packaging equipment and barrier materials to McDonald's integrated food-processing plant outside Moscow to package and protect meat for its restaurant and other restaurants and hotels in the Moscow area, Grace said.
Officials did not provide details on the McDonald's Moscow deal or the expansion.
``We expect Russia to become one of the largest packaging markets in the world and a significant complement to Grace's existing business in Europe,'' Jean-Louis Greze, president of Grace Packaging worldwide, said in a news release.
Grace, the majority partner in Grace Kaustik, invested several million dollars in equipment, technology and financing for the joint venture. Its partner, A/O Kaustik, is a privatized chemical and industrial company with more than 6,000 employees in Volgograd.
Grace Packaging has more than 9,000 employees in more than 100 countries. The company reports annual sales of about $1.5 billion.