The conversion project will be completed by the end of 2022

Ilim Group has made a decision to upgrade and convert its PM5 in Koryazhma, which is currently used to produce white papers, to unbleached packaging kraft paper. The conversion project will be completed by the end of 2022. In 2023, paper machine will produce 70 thousand tons of finished products for the fast-growing market of packaging papers.

“The pandemic has further boosted a consistent consumption growth in different packaging segments. We see that this segment has a good potential and we listen to our customers’ requests to increase production volumes of unbleached virgin packaging paper grades. Development of e-commerce and delivery services as well as increasing attention of consumers and community to environmental issues contribute to further growth of this market”, said Ilim Group CEO Ksenia Sosnina.

The Koryazhma Mill will produce Ilim Lite and Ilim Shopper, which will target different market segments: retail and food packaging.

Throughout this year the Company has been producing new grades of kraft papers in a test mode. Ilim Group partners noted a high quality and confirmed the market demand for the new products.

The Company intends to produce kraft papers with basis weights ranging from 40 to 80 gsm. The products will be targeted at the domestic, Asian and European markets.

The new product composition includes 100% virgin softwood and hardwood pulp allowing to produce an absolutely environmentally friendly product. The kraft paper produced by the Koryazhma Mill is certified in accordance with FSC and PEFC standards and has relevant certificates used in food industry, including Isega international certificate.

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Ilim Group is the largest manufacturer of pulp and paper products in Russia, and one of the largest exporters of softwood pulp to China. Ilim has three pulp and paper mills in the Arkhangelsk (Koryazhma) and Irkutsk (Bratsk, Ust-Ilimsk) Oblasts, two modern corrugated box plants in the Leningrad and Moscow Oblasts, and Sibgiprobum engineering and design institute (Irkutsk). Ilim Group exports its products to more than 70 countries worldwide. In 2020, Ilim’s aggregate production output totaled 3.6 million tons. The product mix of the Koryazhma Mill includes packaging materials, white papers and pulp. In 2020, the Mill produced 1.36 million tons of products.

In 2022, Ilim will start up a new facility to produce packaging products in Ust-Ilimsk. Delivery of the project involving construction of a new KLB Mill with a capacity of 600 thousand tons of KLB per year will help Ilim reinforce its presence in the packaging segment, primarily in the growing Asian markets. Upon completion of the investment project in Ust-Ilimsk, Ilim Group will become one of the largest manufacturers of unbleached packaging materials globally with a total board output of 1.5 million tons per year, bringing its aggregate production output to over 4.5 million tons per year.