Arkhangelsk Pulp and Paper Mill (APPM), one of Russia’s largest pulp and paper mills, has significantly raised prices for its product range, according to the company.
According to an official spokesman of the company, prices for cardboard for flat layers and fluting will rise by 13%, for hardwood bleached pulp by 9%, while for softwood bleached pulp for 17%. At the same time prices for label paper will increase by 10%, while for writing paper by 5%.
The increase in prices is mainly due to a current crisis in Russia, caused by Western sanctions.
The existing investment program of the enterprise is designed until 2017 and is estimated at 15 billion rubles (US$500 million) of investment. Half of investments will be allocated in the purchase of equipment mostly from abroad.
Part of the funds is expected to be also invested in the construction of a new plant for the production of hemicellulose (about 3 billion rubles), reconstruction of two board machines (RUB 2,8 billion) and other projects.
The ever weakening Russian ruble increases the cost of debt servicing and reduces lending opportunities, according to the company.
At present net debt of the company is estimated at 9.2 billion rubles, which is by 28.1% more, compared to 2012.
