Segezha Group, one of Russia’s leading timber producers, which is part of the local financial conglomerate AFK Sistema, plans to build a new pulp and paper mill in the Russian Karelia region within the next several years, which is expected to be one of the largest in the country according to the company and some local media reports.
The new enterprise will produce over 850,000 tons of pulp per year and will be part of a newly established pulp and paper cluster in the region, consisting of JSC Segezha PPM, LLC Segezha Upakovka and LLC Segezha West.
The overall volume of investments in the project is estimated at RUB 100 billion (US$1,33 billion), that will be a record figure for the Russian timber sector for the last several years.
In the meantime, in addition to building of a new production facility as part of the company’s plans is also conducting of modernization and reconstruction of Segezha PPM JSC, the world’s third largest producer of high quality kraft paper, which is located in the same Karelia region. The current capacity of the plant is 360,000 tons per year and is expected to be increased up to 420,000 tonnes starting from 2022.
About 70% of its products are exported to more than 70 countries. The enterprise provides jobs for about 2,000 of local residents. Investments in the project will amount to about 7 billion rubles.
By: Eugen Gerden