Ilim Group Enters into a Strategic Partnership Agreement with China’s Key Industry Players

Ilim Group Enters into a Strategic Partnership Agreement  with China’s Key Industry Players
Ilim Group Enters into a Strategic Partnership Agreement  with China’s Key Industry Players
Ilim Group Enters into a Strategic Partnership Agreement  with China’s Key Industry Players
Ilim Group Enters into a Strategic Partnership Agreement  with China’s Key Industry Players
Ilim Group Enters into a Strategic Partnership Agreement  with China’s Key Industry Players
Ilim Group Enters into a Strategic Partnership Agreement  with China’s Key Industry Players
Ilim Group Enters into a Strategic Partnership Agreement  with China’s Key Industry Players
Ilim Group Enters into a Strategic Partnership Agreement  with China’s Key Industry Players
Ilim Group Enters into a Strategic Partnership Agreement  with China’s Key Industry Players
Ilim Group Enters into a Strategic Partnership Agreement  with China’s Key Industry Players
Ilim Group Enters into a Strategic Partnership Agreement  with China’s Key Industry Players
Ilim Group Enters into a Strategic Partnership Agreement  with China’s Key Industry Players

Ilim Group presented to Chinese partners its new pulp and paperboard mill (the KLB Mill) in Ust-Ilimsk. The Mill’s output will reach 600 thousand tons of kraftliner per year. Thereby, Ilim’s aggregate exports to China will surge to 2.4 million tons per year

Ilim has been operating in the Chinese market for over 27 years. More than 500 mills in 20 regions of China have become the consumers of Ilim’s products since the cooperation began. By developing in the world's largest market through its go-to-market strategy, Ilim Group has become No. 1 supplier of virgin corrugating materials to China. At last year’s end,

Ilim’s achievements included, but were not limited to, reinforcement of the Company’s position in the central and southwestern parts of China. Logistics infrastructure developed in the region under One Belt, One Road transcontinental initiative made this success possible. As a result, exports tripled to reach record-breaking 1.7 million tons by the end of 2022, including about 1.4 million tons of pulp and 360 thousand tons of paperboard. By 2025, the Company will have increased its supplies to China by 40%: from 1.7 to 2.4 million tons per year.

Lin Mao, Chief Executive Officer of Xiamen C&D Inc., the world’s largest multi-industry conglomerate ranked among Top 100 World Companies (No. 69 in Fortune Global 500), was a member of the Chinese delegation. Representatives of Shanghai High Hope Pulp and Paper, a service provider for a pool of manufacturing and logistics companies in the Middle Kingdom, were also among the visitors to the new KLB Mill. Delegates from the largest mills producing packaging products incorporated under Shanying International Holdings ranking third in packaging production and second in corrugated packaging production in China, visited the new Mill.
While touring the Mill, the Chinese guests were able to see the parameters of the best-in-class and one-of-a-kind customized board machine (KLB machine). Its capacity is four times as high as that of any standard equipment. As a result of the meeting, agreements on strategic partnership in KLB supplies were signed with such key players of China’s pulp and paper market, as Xiamen C&D Paper and Pulp Company, Suifenhe Sandu Papermaking Company, TC International, Jia Hui Trading, Suifenhe Sanxia Economic and Trade Company, and Shanying International Holdings.

Launching the KLB Mill in Ust-Ilimsk will bolster Ilim’s leadership in the global kraftliner market.

"We make products for almost all the segments demanded in the market: our kraftliner basis weights range from 80 to 175 gsm. We produce 100% virgin board certified for food and other industries", Alexey Chernyaev, CEO of Ilim Group, emphasized. He noted that the start-up of new capacities will facilitate the upsurge of the packaging share in the Company’s product portfolio to reach 40% by 2025.

"We have about twenty years of continued fruitful cooperation with Ilim Group. With launching a new production facility in Ust-Ilimsk the development of our partnership will take a new turn", Lin Mao, Chief Executive Officer of Xiamen C&D Inc, commented.

About Ilim Group: Ilim Group is the leader of the Russian pulp and paper industry and one of the industry leaders globally. The Company is one of the world’s top seven producers of bleached softwood pulp. In 2022, the annual finished products output totaled 3.63 million tons. By 2024, Ilim intends to increase its output to 4.2-4.3 million tons. In Russia, the company accounts for 77% of all market pulp, 16% of packaging materials, and 25% of white papers produced. About half of Ilim products are exported to China, where the Company is the leading player in the virgin corrugated materials segment. In 2022, the Company’s supply volume amounted to
record-breaking 1.72 million tons. The Company’s priority by 2025 is to increase supplies to China by 40% to reach 2.4 million tons per year. Apart from its key Russian and Chinese markets, Ilim also prioritizes the markets of the Middle East, India, Africa, and Latin America.

Reference information on manufacturers from China:

Xiamen C&D Paper and Pulp, a state company, incorporated under Xiamen C&D group, founded in 1992. Cooperation with Ilim Group since 2004.

Suifenhe Sandu Papermaking Company, a private company founded in 1996. Cooperation with Ilim Group since 1997.

TC International, a private company founded in 1994 under ARC brand. Cooperation with Ilim Group under TC International brand since 2006.

Jia Hui Trading, a private company founded in 1999. Cooperation with Ilim Group since 2002.

Suifenhe Sanxia Economic and Trade Company, a private company founded in 2002. Cooperation with Ilim Group since 2006.

Shanying International Holdings, a private company founded in 1993. Cooperation with Ilim Group since 2021.