Huhtamaki Group subsidiary Huhtamaki Foodservice begins building paper cup plant for McDonald's, with investments at 217M Russian rubles; plant expected to have capacity of 2,600 tonnes/year

MOSCOW , April 11, 2014 () – Germany's HAVI Logistics and Finland's Huhtamaki Group, who are both suppliers of McDonald's, have begun building factories in the Alabuga special economic zone (SEZ), the SEZ said.

LLC HAVI Logistics, which is part of HAVI Group, will build a distribution center. The company already has 10 distribution centers in Russia that provide the procurement, storage, processing and delivery of products for the 423 restaurants of Russia's McDonald's chain.

Investments in the project have been announced at 599.9 million rubles, and the distribution center is planned to be built in the first half of 2015. The center will be able to handle 25,500 tonnes of products from companies and clients. HAVI Logistics has also signed a contract with LLC Belaya Dacha Alabuga for salad and green vegetable supplies.

The company has also reached agreements with other SEZ residents such as Ist Bolt Yelabuga, which supplies McDonald's with buns, and Huhtamaki Group, which supplies the chain with disposable tableware. Huhtamaki Group subsidiary LLC Huhtamaki Foodservice began building a paper cup plant on Thursday for McDonald's. Investments have been announced at 217 million rubles, and the enterprise is expected to have capacity of 2,600 tonnes per year.

The investor is planning to account for 12.2% of the industry's market. In Russia, the company has already built a warehouse complex in Ivanteyevka, Moscow Region. Huhtamaki has agreed with the European Bank for Reconstruction and Development (EBRD) for a loan of 17.5 million euro to build the factory in Alabuga.

* All content is copyrighted by Industry Intelligence, or the original respective author or source. You may not recirculate, redistrubte or publish the analysis and presentation included in the service without Industry Intelligence's prior written consent. Please review our terms of use.