Cigarette packaging

Global packaging company MeadWestvaco (MWV) has agreed to sell its European tobacco folding carton business to Sweden-based AR Packaging, a manufacturer of paperboard cartons, flexible packaging and trays.

MWV’s European tobacco folding carton business has facilities in Graz, Austria; Krakow, Poland; and Moscow, Russia, where it manufactures hinge-lid boxes, display cartons and high-impact cigarette packaging, as well as folding carton packaging for chocolate confectionery and consumer apparel segments.

The sale also includes the tobacco and confectionery folding carton business currently served by MWV’s plant in Svitavy, Czech Republic.

However, the Svitavy plant will remain part of MWV.

The business, which is part of the company’s food and beverage segment, generates nearly $190m in annual sales.

MWV will continue to produce solid-bleached sulfate paperboard for global tobacco end-markets at its paperboard mill in Covington, Virginia, US.

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"Our strong teams and facilities in the folding carton space will flourish as part of AR Packaging."

The financial terms of the sale remain undisclosed.

MWV’s Tobacco business president Joe McNamara said: "This transaction gives us the opportunity to further focus our participation on our leadership position in high-quality paperboard for tobacco and other premium packaging markets around the world.

"Our strong teams and facilities in the folding carton space will flourish as part of AR Packaging, and MWV will continue to serve our global customers as the market for high-quality paperboard grows in many regions."


Image: MWV’s European tobacco folding carton business manufactures hinge-lid boxes, display cartons and high-impact cigarette packaging. Photo: courtesy of Mister GC / freedigitalphotos.