The investment ensures close alignment with the needs of our existing and future customers across these different industry verticals, Konstantin Savinov, Greifs director of operations for Eastern Europe, told Lube Report Monday.

The new multi-million dollar, food-grade IBC production facility is located in Kaluga, southwest of Moscow, and covers 5,500 square meters. The facility will allow Greif to double its production of IBC in Russia, according to the company.

Savinov emphasized that the company is committed to the Russian market and it chose Kaluga because of cooperation demonstrated by the local government, as well as for logistical reasons.

Continued investment from local government and multinational corporations, as well as its proximity to several of Greifs key customers makes Kaluga an attractive region, he said.

The industrial parks in Kaluga oblast are home to several Russian and international manufacturers and suppliers in the automobile industry and also the location of lubricant blending plants operated by Germanys Fuchs Petrolub SE and French energy giant Total.

The investment will allow us to better serve our existing customers by offering more flexibility, reduced lead times and lower transportation, Savinov said. He added that this capacity could allow the company to secure new contracts, particularly in the food industry, as well as coatings, petrochemicals and specialty chemicals.

Greif opened its first IBC facility in Russia in Kazan in 2007. The company also operates seven steel drum production facilities in the country, the most recent of which was opened last year in the same location.

Greif owns various packaging production facilities in nearly 300 operating locations in more than 40 countries.