Considering increased demand on coniferous pulp in China and large forest resources in Siberia Ilim Group is currently carrying out research on construction of a new pulp and paper mill in Bratsk (Irkutsk region).

Besides, existing demand in the internal market creates attractive conditions for increasing capacities of office paper production. That’s why the company is so actively realizing the project on new paper making machine installation in Koryazhma (Arkhangelsk region).

According to Paul Herbert the main problems of the Russian pulp and paper sector are as follows:

• Lack of investments;
• Undeveloped infrastructure;
• Hampered access to forest resources;
• High country risks.

However, Russian pulp and paper sector is still highly competitive in the world market.

At the same time this year Ilim Group fulfilled its anti-crisis programme that allowed the company to strengthen its position in the market, to fulfill obligations in front of employees and partners, to realize investment projects, of them purchase of more than 200 units of forest machinery for timber companies in Siberia, launching of the world’s largest mill for neutral sulphite pulp production in Koryazhma. All in all in 2008-2009 Ilim Group invested over 6 billion RUR (about 140 million EUR).

Business Support Bureau "Runa"  www.runa.info 

For more information about Russian timber industry, please see MOST  (Market Overview. Statistics. Trends) - regularly updated digest of the situation in the Russian timber industry! New edition - September 2009!