Volga Pulp and Paper Mill, JSC is planning to invest over 100 mln EUR into production development in 2009-2011.  

With the existing problems of the global newsprint market the main task for the Volga enterprise is to strengthen its marketability on the priority export markets. In the next three years the administration of the company will invest over 100 mln EUR into production development.  

The money will be used for the increase of the main newsprint production volume by almost 25%  by 2011.  Besides, the mill is planning to modernize two papermaking machines (¹6, ¹7) (20 mln EUR for each machine) during the next 1.5 years, which will allow increasing mill production by 10-15%.

At present, the modernization projects are at the R&D stage and are to be approved by the Board of Directors, meanwhile, the negotiations with the machinery suppliers, incl. Metso, Voit, GLW, JonsonFoil, are being held.  

The next investment project includes paper machine ¹8 modernization. It is one of the most powerful machines in Russia today. The investments will amount to approximately 20 mln EUR. The machine capacity will increase by 290 thousand tons against current 270 thousand tons.  The mill is planning to begin the reconstruction works of the paper machine ¹5 in 2011.  

Another decision is to replace the papermaking machine ¹4 in 2009-2010. This papermaking machine is used for fluting and test liner production. Equipment being replaced, the today’s machine capacity of 15 thousand tons will increase up to 80-100 thousand tons, and the produced paper will be of much higher quality.

The investment project is to be financed by means of own capital and loans. The main task for the Volga Pulp and Paper Mill is increase production volume and improve paper quality as well as save sale, production costs and provide production of 800 thousand tons of newsprint per year.

Business Support Burea "Runa" www.runa.info