Ilim Group closes the deal for acquisition of JSC Sibgiprobum shares

Based on the results of the auction approved by Order of the Government of the Russian Federation No. 78-r of January 25, 2018, Ilim has acquired a 100% participatory interest in the share capital of the engineering company.

Группа «Илим» завершила сделку по покупке акций АО «Сибгипробум»

Sibgiprobum offers research and development and engineering and design services for the forestry, wood processing, and pulp and paper industries. It provides integrated engineering and design solutions for construction, rebuild and retrofit of facilities in the relevant industries.

To buy Sibgiprobum was a strategic decision as Ilim is now entering a new investment cycle, involving a major upgrade of the existing facilities and set-up of new production lines over the five-year horizon. Ilim’s investments in 2018 reached half a billion US dollars. The quality of project development will define the future of the Company in the long run. “Sibgiprobum will be Ilim’s main engineering contractor for all projects, including strategic initiatives in Bratsk and Ust-Ilimsk. With a team of highly qualified professionals and extensive background in engineering and design of largest pulp and paper facilities in Russia, Sibgiprobum will support Ilim in implementation of its initiatives. Moreover, integration of Sibgiprobum into our Company is in line with Ilim’s HR strategy which focuses on further development and improvement of key competencies of our people”, commented Ilim Group CEO Kseniia Sosnina.

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Irkutsk-based Pulp and Paper Enterprise Engineering Institute of Siberia and the Far East Joint Stock Company (JSC Sibgiprobum) was established in 1956 to become the only engineering and design institute and supplier of engineering survey services for the forestry, wood processing, and pulp and paper industries in the region. Sibgiprobum developed the design for the Bratsk Mill and did some individual projects for the Ust-Ilimsk Mill.