Alcan Packaging's Global Beauty Division is expanding its reach into Russia with a deal to purchase the Tubapak cosmetic tubes manufacturing facility in that country.
``It will enable us to significantly increase our capability in the attractive Central and Eastern European markets,'' said Ilene Gordon, president and chief executive officer of Alcan Packaging, in a news release.
The agreement subject to clearance by Russian authorities will include 75,347 square feet of production and warehousing space in the Moscow area. Tubapak is part of the Moscow-based Koros Group and makes plastic tubes for the Russian cosmetic and personal-care market.
``Our strategy is to accompany our global customers as they develop new products and enter new markets. This acquisition, our first in Russia, will enable us to meet existing supply contacts and, as we increase the plant's capacity, to grow in this region,'' said FranÃ§ois Luscan, president of Alcan Packaging's beauty division, in the same press release.
The company's beauty division owns 12 plants in Europe, excluding the Russian purchase. Seven of the plants manufacture plastic or laminate tubes, while five serve the fragrance and cosmetic market, said a company spokesman in an e-mailed statement. The beauty division had worldwide sales of $850 million in 2007.
Alcan Packaging, headquartered in Paris, generated $6.2 billion in sales for 2007. It has 129 facilities and 30,000 employees in 31 countries.
Alcan is part of Rio Tinto Alcan, which is headquartered in Montreal.
In early July, Alcan Packaging also announced plans to invest $27 million to build a new flexible packaging plant in the NovÃ½ Bydov area of the Czech Republic.
The new plant will focus on the production and printing of high quality rotogravure flexible food packaging and is part of Alcan Packaging Food Europe. The facility is expected to be operational in the fourth quarter of 2009 and will employ 100 in its first development phase.