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Paperi ja Puu: Investlesprom is the leader in the sphere of investments in timber industry in Russia

Friday, 13 May 2011
Despite the fact that in Russia there was also slowing of investments during the crisis , currently the economy of this country is developing again with high speed. The situation favors the start of implementation of investment projects in the timber industry. Magazine «Paperi ja Puu» asked Sergey Malkov, technical development director of Investlesprom Pulp-paper production Division: what prospects of development he sees in Russian timber sector at the moment. While speaking about  timber industry- Russia is an interesting country. There have been  wide perspectives and possibilities  in this sphere for a long period  already , but so far there was no breakthrough . «Some big projects are at the stage of conception development.  There were many projects in the last years plans, but nothing of a major scale was implemented. At the moment a few big projects are being carried out, but all of them are based on brownfield capacities. Existing production facilities are upgraded, their productivity increases, - says Sergey Malkov , responsible for development in Investlesprom  group and investments in PPI.   - The projects that include construction on the territory without well- developed infrastructure proceed more slowly. Specific investment per one tone of a product is too high in such projects. Projects in Siberia  of some two bln euro cost are of this character. Though in case  of a state project it may be carried out even in Siberia,  as it is of a political status.

Investlesprom is ahead of everybody

Investlesprom group was founded only five years ago but it is already the biggest integrated holding in timber industry in European part of Russia. Its business portfolio includes sawn timber, plywood, different wood processed products, pulp, paper and graphic  products. The majority of  raw materials are procured from its own harvesting.
Investlesprom is totally Russian company. There are over 60 enterprises in the concern, which engaged in business in Republic of Karelia, Vologda, Archangelsk, Kirov regions and in Perjm krai. Investlesprom also possesses assets in some countries in Europe. The company is the second largest paper sacks producer in the world.
Currently Investlesprom  is implementing three big projects. The most important from the strategic point of view is LWC Kama project (Perjm krai)-launching of coated paper production,  and  VPM project in Sokol (Vologda region). Thanks to  LWC Kama project the first paper making machine for lightweight coated paper (LWC) manufacturing will appear in Russia.  At the moment this machine commissioning is under the process, its estimated  annual capacity is some  85000 t. The start-up is scheduled for the beginning of summer 2011.
Consortium of companies such as  Vaahto Oy,  UMW, GapÑon, Aikawa, and TM-Systems will deliver paper-making machine and correlated units.  Wood yard and  BCTMP were built by Andritz company.  Honeywell company supplies automatic  systems.

Pilot project -at Kama –
Proceeding - at Sokol


Next step following investments in Kama,  VPM  project in Sokol- mega project  as here we speak about a PMM for about 600 000 t of coated paper manufacture.

«We refer  to big investment project designed in cooperation with   Sweco Industry. Totally integrated PMM will be fed with fiber from existing sulphite line which will be upgraded. Besides pulp plant a new BCTMP line will be installed to improve paper competitiveness by its quality and cost price».

… further- pulp mill in Karelia.

Investlesprom has grand plans. A new softwood pulp mill with capacity of almost 1 bln t/y is supposed to be built in Republic of Karelia. The decision concerning investments it to be made in the nearest time. Preliminary contracts  have been concluded and project team is partly formed. Pulp mill was designed by  Pöyry company together with its subsidiary Giprobum-Poyry. Main equipment suppliers will be Metso, Andritz, OVIVO and EKA. Turbines will delivered from Germany.
«We purchase main equipment in Finland, as we are eager to develop cooperation with Finnish suppliers, especially in case with this project, as the mill is located near the border with Finland. New pulp mill in Segezha is the largest of all projects  in Russian timber industry » - says Sergey Malkov. 

 Original variant is in  pdf
 
 
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