Russia building large PPM in Karelia region
MOSCOW for proved a $2.4 (U.S.) billion dollar investment the Development of the Arctic has just ap , RUSSIA - The Russian State Commissionproject in the Karelia region that will include the construction of a new pulp and paper mill (PPM), Russia’s first in four decades.
The new PPM will be one of the largest ones in the country and will be producing over 850,000 tons of pulp per year. The plant is targeted to be built in the next few years.
The construction will be carried out by the Segezha group, part of Russia’s conglomerate company AFK Sistema. Yuri Trutnev, Russia’s deputy prime minister, said to newspaper Delovoy Petersburg: “The project is considered a priority for VEB.RF (one of the largest Russian state development companies).”
According to the deputy chairman of VEB.RF, Artyom Dovlatov, the pulp and paper project will ensure deep processing of pulpwood harvested in Karelia alongside the growth of non-resource exports of products with high added value. He ensured that the investments will go towards the creation of a modern biotechnological complex with the highest possible processing ability to handle wood raw materials.
The Segezha Group is one of Russia’s main timber producers. It is an international forest industry holding that harvests the timber it utilizes and performs advanced wood processing operations to produce paper sacks, sawn wood, plywood, wood boards, pulp and paper, houses and heat energy. Approximately 70% of the Segezha Group’s products are exported internationally to over 70 countries.
The construction of the new pulp and paper mill will mark the creation of a new pulp and paper cluster in the region of Republic of Karelia. JSC Segezha PPM, LLC Segezha Upakovka and LLC Segezha West will all be part of the industrial agglomeration.
The project, apart from constructing a new production facility, also includes the modernization and reconstruction of an old Segezha pulp and paper mill, the Segezha PPM JSC. The Segezha PPM JSC is currently the third-largest producer of high-quality kraft paper globally. However, the Segezha Group has plans of increasing the plant’s production even more. The plant’s current capacity is 360,000 tons per year, however, is expected to increase to 420,000 tons after its reconstruction in 2022.
Both the construction of the new PPM as well as the renovation of the Segezha PPM JSC will have the positive effect of creating more employment opportunities. Currently, the enterprise provides jobs for about 2,000 local residents. It is estimated that another 700 jobs will be created in the region from the construction of the new PPM alone.
