Ilim Group set up its strategic intention to increase supply of its products to Baoding, Sichuan, Xinjiang, Shandong and Henan provinces of China. The company sees the growing demand for its backed by increasing hygienic and sanitary paper and pulp production and the expanding packing paper segment there.
According to the announcement, pulp consumption in China is foreseen to rise to 38Mt by 2020. To satisfy this demand, Ilim Group plans to implement an investment project to further develop its production facilities in Bratsk and Ust-Ilimsk. The suggested investment amounts to RUB 53 billion (around USD 915 million). Implementing this project will enable Ilim Group to increase its total pulp and paper production volumes by over 500ktpa. In addition, the construction of a new pulp production unit in Ust-Ilimsk is also being considered.
Ksenia Sosnina, CEO of Ilim Group, commented:
“A key priority for the company is promoting a customer-oriented approach, growth and development. Ilim has a competitive advantage and 20 years of experience in the Chinese market. We have created a unique sales system for the Chinese market, which we are continually developing. We have also built a strong partnership with our long-standing clients in this market. All these factors enable us to maintain our position as a leading exporter of softwood pulp, known for its efficient and consistent sales practices. All products delivered as the result of this investment project will meet the high quality standards set by the world’s leading producers. We systematically monitor our products to make sure they meet the requirements of the Chinese market. The key to Ilim Group’s success in the Chinese market is our ability to listen and respond to our clients changing plans and needs.”
In 2016, Ilim Group produced 3.2Mt of products, of which 1.4Mt were supplied to the Chinese market. With the market development, the company expects growth of the export sales in China to exceed 1.9Mt.
About Ilim Group:
The group is the largest pulp and paper company in Russia. Its business assets are located in the Leningrad, Arkhangelsk and Irkutsk regions, those are the largest mills in the Russian forest products industry accounting for more than 70% of the total pulp production in Russia and 20% of the Russian board production. The annual pulp and paper production volume of the company totals more than 2.96 Mt, it employs 17 thousand people.