Greif Beats the Drum for Russia, China


Diversified container maker Greif Inc. recently opened its sixth large-steel-drum plant in Angarsk, Russia,nearthe 4,900 barrels-per-day Group I base oil plant owned by Neft-Aktiv, a subsidiary of Moscow-based oil and gas company Rosneft.

Just being close to customers is what we strive to do, Greif Communications Director Deb Strohmaier told Lube Report. Transportation costs sometimes are not economical, and its much easier for the customer to have the plant nearby.

Greif projects that the plant, with 36 employees, will produce 300,000 large steel drums in 2008. Greif employs more than 300 workers across its six plants in Russia.

Last month the Delaware, Ohio-based company opened a new steel drum plant in Shanghai, China, andestablished its regional headquarters for the Asia-Pacific region there as well. The region includes Greifs operations in China, Australia, Malaysia, New Zealand, Philippines and Singapore.

Strohmaier said the plant in China is near a BP chemical plant. The steel drums are for the oil market, she said. As far as what spins off, were also building a new drum factory that will do plastic and fiber drums, and water bottles.

The company has also announced establishment of Greif (China) Trading Co. Ltd., based in Shanghai. Greif China Trading Co. will optimize Greifs considerable sourcing network, allowing us to more efficiently and effectively move goods around the world, said Michael Gasser, chairman, chief executive officer and president of Greif.

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