Russia’s Segezha might build P&P mill in Krasnoyarsk

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Russia’s Segezha might build P&P mill in Krasnoyarsk

May 31, 2018 - 06:18

BRUSSELS, May 31, 2018 (PPI Europe) -The Russian private investment company Sistema and the government of the Krasnoyarsk region have discussed the potential construction of a pulp and paper (P&P) mill in Lesosibirsk by Segezha Group, a subsidiary of Sistema. The talks took place within the framework of the St. Petersburg Economic Forum.

Segezha Group’s president and chairman of the board, Mikhail Shamolin, noted that it would be risky for the company to implement this greenfield project without support from the state and regional authorities.

“If the decision is positive, it will be necessary to build a 10 km long railway line, a water intake for the monocity of Lesosibirsk, as well as a road overpass near the new mill,” Shamolin added.

He also confirmed that the project would cost around $2 billion in total. Segezha would start construction works in 2019 and finish it within three years.

At present, the group is looking into the feasibility of the project, financing mechanisms and potential contractors and equipment suppliers, it said in a statement.