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Russia’s Segezha Group drafts plan for new pulp and bioproducts mill in Krasnoyarsk, Russia

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Russia’s Segezha Group drafts plan for new pulp and bioproducts mill in Krasnoyarsk, Russia

March 04, 2019 - 06:05
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SEGEZHA, Russia, March 4, 2019 (Press Release) -Segezha Group, a pulp and paper group (part of JSFC Sistema), elaborates design documentation of a new biotechnological complex in Siberia. The project is an up-to-date high-tech manufacturing with a single (switching) pulp line with annual capacity of 0.7 mln tons of bleached softwood and/or hardwood sulfate pulp.

The concept of a new plant designed at the industrial site of the Lesosibirsky LDK No. 1 operating within Segezha Group is based on using 100% wood raw material and arranging by-product operational flows for pulp production and a wide range of other bioproducts as substitutes of fossil materials and fuel. The company plans to invest about 100 bln rubles in pulp and paper production. More than 460 new workplaces are expected to be created in the region.

Construction of the biotechnological complex will take 3 years. The project start will be worked out considering time required to undergo a state examination and to obtain licenses. In 2019–2020 Segezha Group is supposed to pass a whole raw of procedures: environmental impact assessment procedure, approval of projects for a sanitary protection zone, approval of facility deployment by the Federal Agency for Fishery, State Environmental Expertise, Main State Expert Review Board, and obtaining a construction permit.

“We are moving along this path actively. This year we plan to undergo all certifications,” Mikhail Shamolin, President of Segezha Group, emphasized. “This successfully done, we’ll have a chance to say that the project is attractive enough from the economic point of view that it will not be a problem to find investors.”

According to the Head of the company, today pulp and paper mills still have a negative tendency to be stereotyped as a hazardous industry that pollutes environment and has a characteristic smell. From his point of view, it can be explained with the fact that all Russian PPMs had been built back in the Soviet time, while technologies have been developed significantly ever since.

“Modern pulp mills, like those built in Finland and Sweden, for example, are rather biotechnological complexes based on a principle of non-waste production. These mills are environmentally friendly,” Mikhail Shamolin stated. As an example he mentioned the Finnish mill Metsä Group* located within the city, which is safe for both the environment and people living nearby. “It’s a new step in development of global pulp and paper industry, that has already been made in Europe, and we think that such an enterprise should be in our country as well,” President of Segezha Group resumed.

One of strategic advantages of the future Russian biotechnological complex is a lower cost of raw materials and high production energy efficiency. The Krasnoyarsk Territory has an available and high-class raw material base to implement the project. The region occupies the second place by softwood stock – periodic yield of 76 mln.

A total demand for forest resources upon the project is 3.5 mln m3. Segezha Group forest base in the Krasnoyarsk Territory is 2.8 mln m3, which will allow accumulating up to 60% of its own forest resources to provide a new mill with high-class forest raw materials. The company plans to cover remaining demand with third-party woodchip bought at neighboring sawmill plants and external supplies of paper wood.

Also, the Yeniseysky district of the Krasnoyarsk Territory displays a good transport accessibility (the company already has an offer to arrange loading of the Northern Sea Route in capacity of 20,000 containers annually) and proximity to key sales markets.

Target sales markets of future products are countries of Southeast Asia, including China, where a deficit of pine tree fibers exists. For the record, the global market of bleached softwood pulp is broad and growing (CAGR consumption until 2030 is 1.7%).