23-rd International Exhibition for the Packaging Industry
26 - 29 June 2018 • Russia, Moscow, Crocus Expo

Segezha Group is Expanding its Capacity in Producing Sack Paper

News
The unique paper machine is launched at Segezha Pulp and Paper Mill in the Republic of Karelia. The last such project was implemented in our country as early as in Soviet times. The total investment for the project is 110 million Euro, 80 million Euro of which is the cost of equipment.

As a result of the launch of the machine, the production capacities at the Mill will grow by 30% up to 360 thousand tons of sack paper. 200 new high-tech jobs will be created. Currently, Segezha Group already employs 13,000 people, about 2,000 of which are residents of the Karelian single-industry city of Segezha.
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Nikolay Patrushev, Secretary of the Security Council of the Russian Federation, Chairman of the State Commission on Preparations for the 100th Anniversary of the Republic of Karelia, Vladimir Yevtushenkov, Chairman of the Board of Directors of Joint Stock Financial Corporation Sistema, Artur Parfenchikov, Head of Karelia, Viktor Evtukhov, State Secretary, Deputy Minister of Industry and Trade of the Russian Federation, Alexander Vorobyov, Federal Inspector in Karelia, and Herbert Gray, Voith (equipment manufacturer) President for projects in Europe, the Middle East and Africa, launched the new production. After the ceremony of machine launching, the best employees of the Segezha Pulp and Paper Mill were awarded with honorary prizes and certificates from the Ministry of Industry and Trade of the Russian Federation and the Government of the Republic of Karelia.

"Three years ago, when me and Vladimir Petrovich Evtushenkov visited Segezha when Joint Stock Financial Sistema acquired Segezha PPM it was not a comfortable sight. The question was whether Segezha PPM will be able to continue its existence, and if it will, than in what manner. Vladimir Petrovich made a decision, which we observe today in practice. It is important that he found an opportunity and has already invested 14 billion rubles. We’ve got this machine. It is also very important that the products manufactured at the mill are supplied to 60 countries of the world. The products are in demand and take the leading positions in the world in quality. I think that not only the Pulp and Paper Mill will be prosperous, but the Segezha town itself will also be improved. I hope the municipal authorities will actively cooperate with the Mill, and the town itself will acquire a new quality. In addition, I hope that the republic management will help ensure that the Pulp and Paper Mill would be provided with raw materials. Such a problem so far exists. We know all the tasks we face. They are solvable. And I am confident that they will be resolved perfectly. Today we can see that the Mill employs more than two thousand employees and with the launch of the new machine we have got 200 new high-tech jobs more. There is a prospect for development. I wish that the new machine would give the highest quality of work and you were always the first in the world. " – said Nikolay Patrushev, Secretary of the Security Council of the Russian Federation, Chairman of the State Commission on Preparations for the 100th Anniversary of the Republic of Karelia.

“In total, within three years, since the acquisition of Segezha Group, Joint Stock Financial Corporation Sistema has significantly expanded the company’s capacity and created a number of modern high-tech productions for deep wood processing. We will continue to invest in technological improvement of our companies. The modernization of Segezha Pulp and Paper Mill will be completed in 2018, the investment in the project will amount to more than 14 billion rubles. In total, until 2021, we plan to implement an investment program of more than 40 billion rubles”- said Vladimir Yevtushenkov, Chairman of the Board of Directors of Joint Stock Financial Corporation Sistema.
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"It is impossible to overstress the importance of today's event. On behalf of all residents of Karelia, we thank everyone who was involved in the very idea of creating this modern industrial miracle. We also thank the members of the State commission, the shareholders of Joint Stock Financial Sistema and the staff of Segezha Group and Segezha PPM for the fact that new technologies, new opportunities, capacities, and new workplaces, additional taxes and new prospects are coming to our Republic"- said the Head of the Republic of Karelia Artur Parfenchikov at the production launch ceremony.

“We have created a modern production facility capable of manufacturing products with high added value within the country”, Kamil Zakirov, Segezha Group President, commented on the launch of the new machine. “Following the company’s development strategy, we are striving not only to follow world trends but also to outperform them, to create a product of tomorrow, to develop reprocessing, taking into account the customers’ needs at present and for the future. The Group aims at creating a new quality and a new look of the Russian timber complex”.

Commissioning of the high-tech and environmentally friendly production is one of the main stages of the comprehensive modernization at Segezha Pulp and Paper Mill, the basic asset of Segezha Group timber holding, which is a part of Joint Stock Financial Corporation Sistema. The modernization of Segezha PPM will be completed in 2018, the investment in the project will amount to more than 14 billion rubles. After the release of the project for payback, tax payments to the budget of Karelia will double.

Segezha paper is represented in 60 countries of the world and competes with the market leaders’ products on equal ground. Segezha Group is the first in the world in self-cost of kraft paper and ranks 4-th in the world in the total production. After the new paper machine reaches its designed capacity, Segezha Group will be the second in the world.
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