Ilim Group will become an exclusive supplier for one of the largest plants in Northeast China.
Ilim Group, a leading Russian manufacturer of P&P products, will become an exclusive supplier of bleached SW pulp for one of the largest plants in Northeast China. The first production line was placed in service in November 2020.
Liaoning Yusen Sanitary Products Co, Ltd tissue plant was built by Baoding Yusen company and co-financed by Xiamen C&D Corporation, a large Chinese distributor and one of Ilim’s key partners in the People’s Republic of China. Bleached SW pulp will be delivered to the new plant as part of the Silk Road project.
The tissue plant plans to produce 60 thousand tons of tissue in 2020 and increase its output up to 160 thousand tons in 2021. The full design capacity of the plant will total 360 thousand tons of products per year. The plant will be fully ramped up after 2022.
The first production line was started up on November 11, 2020 in Liaoning province. Su Mali, owner of Baoding Yusen company, and Cao Zhenlei, Chairman of the China National Household Paper Industry Association and China Paper Association, took part in the official launch of the first production line.
The Northeast of China is one of the key markets for Ilim Group, which is inter alia due to logistics, namely due to its geographical proximity to Ilim's Siberian Mills.
Currently, Ilim Group supplies 1.6 million tons of raw materials to more than 500 plants in various regions of China. Four years from now, Ilim plans to operate in all regions of the People’s Republic of China and in 5 years Ilim’s exports are expected to increase up to 2.4 million tons per year. By 2025 the aggregate production output of Ilim Group will exceed 4.5 million tons per year. Currently, Ilim is implementing a large-scale investment program to increase the aggregate output of its mills by 1 million tons per year. Construction of a new pulp and paperboard mill in Ust-Ilimsk with a capacity of 600 thousand tons is one of Ilim's key projects with a start-up scheduled for 2022.
Reference information
Ilim Group is the largest manufacturer of pulp and paper products in Russia, and one of the largest exporters of softwood pulp to China. In 2019, Ilim Group produced more than 3.2 million tons of products. 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. Ilim has been operating in the Chinese market for 25 years.
Xiamen C&D Corporation is a Chinese state-owned multibusiness corporation that is involved in wholesale trade, logistics, investment, real estate, tourism and hotel businesses. Xiamen C&D Corporation is one of the largest global companies. The corporation that is headquartered in Xiamen was established in December 1980. Xiamen C&D Corporation is one of Ilim’s key partners for supply of products to the Chinese market. The corporation is actively contributing to the development of production facilities in various regions of China.
The Silk Road is a transportation and logistics system which is also known as the Belt and Road project. The start of this megaproject was announced in September 2013 by Xi Jinping, the President of the People's Republic of China. The goal of the project is to expand and simplify trade routes between China, Asia, Africa and EU. This initiative was supported by 40 countries, including Russia.