The Chinese business is interested in the establishment of large-scale pulp and paper productions in Russia, particularly within the territory of the country’s Far East region, according to recent statements, made by representatives of Chinese investors and some local media reports.
Currently the Far East region experiences a shortage of enterprises, specializing on pulp and paper production, as the majority of them, which were built during the Soviet times and ceased their activities during the post-perestroika period.
Meanwhile, at present up to 40% of the produced forest resources in the region are not used, remaining in the cutting area. That leads to a significant deterioration of sanitary and fire safety in the region and direct economic losses of the regional and federal budgets.
According to analysts, one of the ways to solve the problem could be building of a large-scale pulp and paper mill in the region, that will focus on the processing of low-value timber and logging waste and will have a status of one of the largest pulp and paper producers in the region.
In regard to Chinese investors, in recent years representatives of Chinese business have already expressed their interest in the building of a large-scale paper mill in the Russian Far East. A couple of years ago China Paper, a leading Chinese paper producer, has even reached an agreement with the authorities of the Russian Khabarovsk territory to build an enterprise a paper mill within the territory of the region, planning to invest up to US$1,5 billion in the new facility, however that project was never implemented.
By: Eugen Gerden