Fire halts PraimKartonPak dairy packaging plant as rivals prepare to cover demand
PraimKartonPak has stopped production after a fire destroyed equipment at its Leningrad region site. Industry representatives expect competitors’ spare capacity, imports from Kazakhstan and China, and alternative packaging formats to prevent a national shortage.
Equipment destroyed after warehouse fire
PraimKartonPak, one of Russia’s largest producers of packaging for dairy products, has stopped operating after a fire at a warehouse in the Leningrad region. The fire occurred on 24 July, the same day drones attacked a neighboring Wildberries logistics center. The available reports do not establish a connection between the two events.
The company confirmed that its production premises were damaged and said the equipment could not be restored. No timetable has been given for restarting operations. The site’s landlord has notified PraimKartonPak that its lease will be terminated because of force majeure, while the company is preparing documents to obtain an official force majeure certificate.
The plant had annual capacity of 1 billion packages and was operating at 50% utilization, according to Business FM. Approximate estimates cited by the publication put PraimKartonPak’s share at one-quarter of the Russian market in its segment. Before 2022, the plant belonged to Norway’s Elopak; it subsequently came under the control of Russian management.
Competitors and imports offer replacement capacity
Industry specialists do not expect the shutdown to cause a sustained packaging deficit. Alexey Gruzdev, chief executive of Streda Consulting, told Business FM that other producers have reserve capacity. He identified Lambumiz and MoloPak as companies able to increase output, while Kazakhstan and China could supply additional packaging through imports.
Gruzdev also noted that the plant, then operating as Elopak, was idle for more than half a year in 2022 without causing an unmanageable disruption. If some dairy processors cannot secure enough of the same carton format, they could redirect volumes to bottling lines or other types of packaging.
Artem Belov, chief executive of the National Union of Milk Producers Soyuzmoloko, said projects launched in Russia since 2022 had expanded domestic production of comparable packaging. He expects existing capacity to be sufficient, although switching between suppliers will take time and could temporarily raise transaction costs. Belov added that dairy companies rarely depend exclusively on a single packaging supplier and normally diversify their procurement.
Dairy processors face a supplier transition
PraimKartonPak is known for its Pure-Pak technology, which produces cartons with a distinctive gable-shaped top. The format is used primarily for pasteurized milk. Customers named in the reports include Ekomilk, the Kirovsky, Tulsky, Nalchiksky and Korenovsky dairy plants, A7 Agro’s Orenburg dairy plant, the Yaroslavl dairy products plant and Altaiskaya Burenka.
These processors may need to qualify replacement materials, adjust filling equipment or redistribute production among packaging lines. The available spare capacity and import options reduce the risk of empty retail shelves, but the transition could still affect procurement schedules and costs for individual plants.
According to SPARK data cited by Business FM, PraimKartonPak generated revenue of 2.5 billion rubles last year and net profit of 28 million rubles. Its owners received a combined 366 million rubles in dividends over the past two years. With the damaged equipment considered beyond repair and the lease being terminated, the company’s route back to production remains uncertain.
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