NEW STATE-OF-THE-ART AVERY DENNISON AND ARTMARK DC OFFERS RUSSIAN LABEL CONVERTERS SERVICE AND INVENTORY ENHANCEMENTS

Thursday, December 1, 2011

More than 250 visitors – customers, suppliers, and press – joined Avery Dennison and ArtMark Materials for the grand opening of the two companies’ joint distribution centre (DC) in Podolsk, on the outskirts of Moscow. The new facility joins existing ArtMark and Avery Dennison DCs in Russia in Ekaterinberg, Novosibirsk, Rostov-on-Don, and Saint Petersburg. Together, they make up the most extensive network of customer service outlets for pressure-sensitive labelstock in Russia.


‘A great new DC’
Proceedings were opened by Dmitry Polyakov, account manager, Russia, Avery Dennison, who welcomed guests to ‘our great work of art’.
The inauguration continued with speeches by senior executives from Avery Dennison and ArtMark Materials.

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Left to right: Angelo Depietri, vice president and general manager, Label and Packaging Materials – Europe for Avery Dennison; Ilgar Mamedov, general director, ArtMark Materials; Don Nolan, group vice president, Label and Packaging Materials for Avery Dennison during the Grand Opening of the new DC

Angelo Depietri, vice president and general manager, Label and Packaging Materials – Europe for Avery Dennison, commented: ‘Today, we celebrate not only the opening of a great new DC, but also 15 years of partnership with ArtMark. Together, we have a long and successful history in Russia.

‘This new joint investment enables us to offer customers more products, more services, and more innovations. It makes it possible for us to double our inventory capacity, and the state-of-the-art equipment means we can supply wider and longer rolls of labelstock via our Exact™ service for label converters. We can be more flexible, and meet converters’ needs faster.

Ilgar Mamedov, General Director of ArtMark Materials, and Dean Scarborough, chairman, president, and CEO of Avery Dennison, cut the red ribbon to officially open the new facility.
Don Nolan, group vice president, Label and Packaging Materials, for Avery Dennison, introduced recent innovations in the company’s ever-extending portfolio of technical and decorative solutions for the packaging industry.

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Dean Scarborough, chairman, president, and CEO of Avery Dennison Corporation and Ilgar Mamedov, general director, ArtMark Materials, perform the official opening ceremony

Eric Burton, project manager, engineering and process technology- Europe for Avery Dennison, who was responsible for the DC’s design and build, detailed the impressive infrastructure and equipment, designed to incorporate the very latest principles of lean manufacturing methodology and ensure that customers and employees can depend on the facility to operate safely, consistently, and robustly.
Visitors were invited to tour the 5000M2 facility before returning to central Moscow for a gala dinner.

MARKET-RELATED COMMENTS AND DATA FROM AVERY DENNISON AND ARTMARK
Avery Dennison and ArtMark’s long partnership has given the two companies a unique knowledge of the market – a market which continues to demonstrate above-average growth year-on-year.
Dean Scarborough, chairman, president, and CEO of Avery Dennison, describes Russian consumers as ‘very aspirational – they like brands. However, that is not the only feature of this growing marketplace,’ he adds.

‘We are seeing growth accelerating in the private label market as the Russian retail infrastructure matures – and every major retailer in Europe is now establishing a footprint in Russia.’

Don Nolan, group vice president, Label and Packaging Materials, for Avery Dennison, concurs with the sentiment, and affirms that ‘we are here for the long term, and ready to invest when it’s necessary. Self-adhesive labels have proven to be the winning product identification and decoration technology and here – as in the rest of the world – they are particularly popular today for beverage labelling. As well as vodka and other spirits, beer in particular offers great opportunities. It is a huge market in Russia.’

Comments Angelo Depietri, vice president and general manager, Label and Packaging Materials – Europe for Avery Dennison: ‘From a starting point of very low per capita usage, we have experienced a surge of interest in self-adhesive labels – both from Russian brand owners, and from the international brand owners who are increasingly setting up production and packaging facilities in this dynamic marketplace. The potential is huge’.

Jeroen Diderich, vice president, sales and customer services, Label and Packaging Materials - Europe, for Avery Dennison adds: ‘While we are no longer seeing the 15% annual growth rate that characterised the early years of this millennium, the market continues to grow at a healthy 5-10%, and, working with ArtMark, we have more than doubled our volume sales in Russia over the past seven years. I believe that our route-to-market has been the key to our success. In an emerging economy, the major challenge is to be able to establish relationships with local label converters and end users, and here, ArtMark has played a critical role in our success – and continues to do so.

Mr Diderich continues: ‘Most of the pressure-sensitive labelstock business is in paper labels for spirits (there are over 3500 brands of vodka alone), foods, and personal care products, but we are also seeing dynamic growth in pressure-sensitive film labelstocks for clear-on-clear applications. The new DC enables us to offer much-improved inventory levels for these popular products.’

Ilgar Mamedov, general director, ArtMark Materials – part of the ArtMark Group of companies – expressed his enthusiasm for the new joint investment. ‘This new site enables us to further improve our service to the self-adhesive label community, and is a real affirmation of the intention of ArtMark and Avery Dennison to move forward together as our consumer society in Russia continues to grow. We look forward to continuing to offer our customers and their end-user customers the innovative new products that characterise the Avery Dennison labelstock portfolio – which can be sourced around the globe, and is therefore of particular interest to international brand owners. We also value highly the levels of technical support, training, and market information that comes as part of our partnership with Avery Dennison.’

NEW AVERY DENNISON AND ARTMARK DC – INFRASTRUCTURE
· Total area 5000M2
· Seven sections in an optimised ‘U’ shape, including:
­ Administrative offices
­ Receiving and shipping for 3 tons master roll replenishment
­ Warehousing for approx. 11 million M2
· Three slitters, each delivering a shift capacity of up to 150,000M2
­ Two brand new 2M slitters capable of running paper or film labelstocks,
from 15-270 micron thick, and rewinding slit rolls up to 1.2M wide on
3” or 6” cores
­ Capacity for a third 2M slitter when required
­ One refurbished 1M dual slitter/rewinder capable of unwinding parent rolls
of up to 1.3 tons
· State-of-the-art automated packaging line which can handle, pack, wrap, and sort stack sizes up to 1.3M high and with outer diameters up to 1.2M

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The new 5000M2 Avery Dennison and ArtMark Moscow distribution centre
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