BRUSSELS, Dec 11, 2014 (RISI) - Angara Paper has revealed that it is currently finalizing the list of financing parties and completing the pre-engineering stage in its project to build a new 1.25 million tonne/yr bleached softwood kraft (BSK) and dissolving pulp mill in Lesosibirsk, in the Krasnoyarsk region of eastern Russia
Presenting an update on the investment at the Adam Smith Pulp & Paper Russia conference last week, the firm's general director Mikhail Azanov said that Angara Paper is currently looking for an industrial partner who could put up 10% of the $500 million equity financing the project requires.
The total cost of the investment is $3.2 billion, with the bulk of the amount expected to be covered by a loan.
Once Angara signs up an industrial partner, the firm will be ready to proceed to the engineering stage of the investment and start construction, Azanov said.
He said that the timeline of the investment is likely to be delayed. Due to the specific climate conditions in the Krasnoyarsk region, construction work can be launched only in April, which would prolong the project implementation, Azanov said.
Angara is owned by the Brazzaco and Bonsin Commercial firms registered in Cyprus. The firm announced plans for the new mill in 2008. In September 2012, Angara Paper and the Japanese firm Marubeni signed an equipment, procurement and construction agreement under which Marubeni agreed to be the turnkey contractor for the pulp mill. Construction of the facility was initially scheduled to begin in early 2013, with startup slated for 2017.