NOVODVINSK, Russia, Oct. 30, 2018 (Press Release) -The shareholder of JSC “Arkhangelsk pulp and paper mill” – Pulp Mill Holding – intends to expand the opportunities of the existing synergetic model in the Russian market. According to Vladimir Krupchak, a member of the Board of Directors of APPM, the ultimate goal is to balance the available capacity as much as possible by building of waste containerboard production plant (WCB).
“Today the holding’s enterprises produce 360 million square meters of corrugated products per year, by the end 2019, we expect a figure of 540 million square meters, by 2020 – 850 million square meters, – said Vladimir Krupchak. “The Arkhangelsk pulp and paper mill provides plants with high-quality raw materials for pulp production, and there is no enough volume of recycled pulp of sufficient quality in Russia.”
According to him not a single paper machine for the production of WCB has been installed in our country in recent years. And the existing capacity isn’t enough to meet the dynamically growing demand.
Speaking about the project Vladimir Krupchak noted that the optimal territory for its realization, as in the case of the acquired company Europac, would be one of the regions that are inclined to the south of Russia. “There are a lot of enterprises belonging to the agrarian sector of our economy in the Southern Federal District. They are always in consumer demand (production of canned food, juices, alcohol, meat, etc.),” he said. – And, despite the fact that there are several large competitors in the corrugated packaging market in the Southern Federal District, which provide up to 80% of production in the region, here, as before, the consumption of these products is almost twice as large as its production, and the deficit is covered by imports or supplies from other regions of the Russian Federation. ”
As Vladimir Krupchak summed up, the WCB segment in the product line of the holding will logically complete the formation of the vertically integrated structure of Pulp Mill Holding, which will meet all the challenges and requirements of the Russian corrugated packaging market.