PPM “Kama”:if we've just copied imported technology then the production would not be competitive

There was a speculation among timber merchants last week that the first in Russia light-weighted coated paper plant launched in a grand in November 2011 at PPM “Kama” (Investlesprom group) doesn’ t work. «The machine «chews» rolls, the production is idle», - sources close to the Mill inform. The Mill management denies it. «The machine runs, ordinary working procedure of adjustment is in progress», - said to «Novy kompanjon» Grogory Bandovskiy, PPM "Kama" executive director

In November 2011 it was officially announced that PPM “Kama” put into operation the first unit in Russia for manufacture of light-weighted coated paper. Oleg Chirkhunov, the Governor of Permsky krai, and representatives of “Rosnano”, interested in cooperation with dynamically developing company, were present at new plant launching. But as confirmed in “Ilim” company, which is constructing its own coated paper production in Archangeljsk region, “ there really were some rumors that the machine had worked only for a quarter and stopped. But the speculations were not seriously considered », - said market payers , positive that the production operates.

Launching of light-weighted coated paper production unit may be regarded as marquee sign for Russian paper industry. Earlier only coated paperboard was manufactured in Russia, but this production is of absolutely another level of complicacy. 100% coated paper used in quality printing industry, advertising catalogues and glossy magazines production, was imported to Russia from abroad. Including light-weighted coated paper( segment where PPM “Kama” works) for production magazines and advertising catalogues, for example “Telesemj” and “Ikea”.

According to Grigory Bandovskiy, LLC PPM “Kama” executive director, coated paper aggregated consumption in Russia is some 300 thous t per year, 150 thous t out of this volume –light-weighted coated paper. «Paper similar to our by quality is delivered by Finland and Scandinavia, paper by dumping price is delivered by China. Light coated paper is of great demand nowadays at mass market », - Vladimir Pavlov, LLC PPM “Kama” press-secretary marks.

«If we just copied imported technology then the production would not be competitive », - the enterprise representatives declare. – «Investlesprom» developed absolutely new production technology on the basis of the cheapest raw material- birch. The machine was assembled out of units delivered by different foreign companies, industry leaders.». Some 6 bln rubl were invested in reconstruction of departments, installation of equipment for paper making machine and auxiliary departments of the Mill. New plant designed capacity is 86 thous t/y. «So we are able to cover up to 55% of domestic market», - says Bandovskiy. According to him, the company’s strategy is aiming at replacing of import. The company management considers also CIF countries, including Belorussia and Ukraine, as potential markets.

Grigory Bandovskiy answered the question if there were any downtimes: «There were downtimes as working procedure of equipment adjustment is in progress before running at full capacity. Paper production is equal to aerospace industry in respect of complicacy . Our unit is of Hand Made character. Its downtime / working time ratio is 50/50 at the moment. Last problems due to which the equipment was halted were connected with programming. Foreign experts were invited, the problem was eliminated.»

According to the executive director, by the end of the first quarter of this year paper production is planned to reach design capacity ( 86 thous t per year ) .

«In November test print was successfully carried out at JSC “Printing house ”Pushkin square” , - informs the Mill’s press-service. According to the information of PPM “Kama” sales department in December the company shipped 200 t of coated paper, including 100 t to a famous distributor, TD “Papirus-Stolica”.

As it was earlier said, after the first LWC paper machine, JSC “Investlesprom” is considering building the second 330 t machine in Krasnokamsk. This project is at the stage of affirmation, according to G.Bandovskiy. The Mill’s owner is negotiating with “Rosnano”, VTB and Bank of Moscow. «We have undergone all necessary research examinations in “Rosnano”.

After the project is completed-within three months- we’ll present it for investors’ approval», - says Grigory Bandovskiy, adding though that the final decision concerning the project hasn’t been made yet. The mill’s management also notes that in case the decision to build one more machine is made, some auxiliary departments will be constructed at the site of PPM “Kama”.