Vladimir Krupchak: “We intend to expand our opportunities of our synergy in the market of readymade packaging”

The shareholder of JSC “Arkhangelsk pulp and paper mill” – Pulp Mill Holding – intends to expand the opportunities of the existing synergetic model in the Russian market. According to Vladimir Krupchak, a member of the Board of Directors of APPM, the ultimate goal is to balance the available capacity as much as possible by building of waste containerboard production plant (WCB).

“Today the holding’s enterprises produce 360 million square meters of corrugated products per year, by the end 2019, we expect a figure of 540 million square meters, by 2020 – 850 million square meters, – said Vladimir Krupchak. “The Arkhangelsk pulp and paper mill provides plants with high-quality raw materials for pulp production, and there is no enough volume of recycled pulp of sufficient quality in Russia.”

According to him not a single paper machine for the production of WCB has been installed in our country in recent years. And the existing capacity isn’t enough to meet the dynamically growing demand.

Speaking about the project Vladimir Krupchak noted that the optimal territory for its realization, as in the case of the acquired company Europac, would be one of the regions that are inclined to the south of Russia. “There are a lot of enterprises belonging to the agrarian sector of our economy in the Southern Federal District. They are always in consumer demand (production of canned food, juices, alcohol, meat, etc.),” he said. – And, despite the fact that there are several large competitors in the corrugated packaging market in the Southern Federal District, which provide up to 80% of production in the region, here, as before, the consumption of these products is almost twice as large as its production, and the deficit is covered by imports or supplies from other regions of the Russian Federation. ”

As Vladimir Krupchak summed up, the WCB segment in the product line of the holding will logically complete the formation of the vertically integrated structure of Pulp Mill Holding, which will meet all the challenges and requirements of the Russian corrugated packaging market

Vladimir Krupchak: “In March 2019 Arkhbum Tissue Group will come into Russian market with strong brand Soffione”

Affiliated company of Arkhangelsk PPM, JSC – Arkhbum Tissue Group, JSC is planning to hold up to 15 % of tissue paper in Russia. It was stated by the member of the Board of directors Vladimir Krupchak.

According to his words, shareholder of Pulp Mill Holding company has a number competitive advantages. Among them – a vertical integration within the group of companies, which minimizes risks related to raw materials due to the fact, that assets in Vorsino of Kaluga region will work with fine fiber FSC-certified raw materials of Arkhangelsk PPM.

The factors of successful entry to the market include, according to Vladimir Krupchak, owned rail car fleet and motor vehicle fleet which will allow Arkhbum Tissue to minimize logistic expenses, unique location of the mill by the side of Moscow ring road, Central Federal District in general, as the major center of products consumption, perfect logistics (one of the most modern dry transport ports of Russia – Kaluga Freight Village – is located 2 kilometers from this place) and availability of highly qualified specialists, working at production departments of Holding as well.

“Now the capacity of the first order of our factory in Vorsino is 70 thousand tons of tissue paper per year with the perspective of a growth up to 210 thousand tons of products per year; this will partially satisfy the demand of tissue products in Russia” – noted V. Krupchak.

At the moment, the consumption of paper tissue products in Russia is about 3.5 kg/ person per year. In Europe it is 12-15 kg/person per year, in Eastern Europe 8-10 kg. According to the data of APPM marketing department, during 2018 country consumption of tissue paper will increase up to 500 thousand tons by the end of the year. It will early grow on an average by 4-6 % up to the level of 800 thousand per year and higher by 2030.

Being environmentally responsible for the future

The 1st August is known as Ecological Debt Day (EDD), when the amount of renewable resources used by humanity begins exceeding the amount which our planet is able to regenerate for a year. For the first time Arkhangelsk PPM became a partner of the campaign. Support of Ecological Debt Day is one of the action points in the goal-oriented program of the pulp and paper giant aimed at reduction of the negative impact on the environment.

“Arkhangelsk PPM always works in close cooperation with WWF Russia, supports various environmental campaigns. This year the mill for the first time has become a general partner of EDD, – Vladimir Krupchak, the member of the Board of APPM, said. – Being environmentally responsible for the present and future of the region, Arkhangelsk Pulp and Paper Mill strictly adheres to high environmental performance standards. The only priority in our work is application of the best available environmental technologies, targeted improvement of the environmental properties of our production facilities, reduction of the negative impact on the environment.”

In 2017 the mill invested about 1 billion rubles in the environment. APPM reduced by 39% GHG emissions against 1990 (the base year). The mill takes the 1st place in Russia in the international rating of GHG emissions disclosure.

In endeavoring to maximize the use of all available biofuel resources in order to reduce GHG emissions, the mill fulfilled the assessment of landfill gas (LFG) energy potential.

By results of the last year, APPM has reduced discharges of pollutants into water by 19%, emissions into the atmosphere by 13%, waste generation by 16%, water consumption by 10.5%, wastewater discharges by 4.3%.

At the end of previous year the mill was excluded from the list of “hot spots” of the Barents Euro-Arctic Council (BEAC).

Arkhangelsk PPM is one of the participants in the first project in Russia to minimize waste disposal via production of granulated wood ash using the mill’s wastes. It will allow to reduce volumes of landfilling at the waste site and respectively decrease the negative impact on the environment.

At present the mill is building a new evaporating station, the launch of which will have a significant environmental effect – reduction of water consumption – by 50%, emissions to the air – by 65%. And, what is the most important, it will help to get rid of the bad smelling gases generated during the production process completely.

This year Arkhangelsk PPM has released fish voluntarily to replenish aquatic biological resources.

The company’s development strategy includes the project of mill’s gasification. Realization of the project will result in a large-scale environmental effect, as switching to natural gas – the most environmentally friendly fossil fuel – will significantly reduce the company’s emissions into the atmosphere. According to preliminary calculations of the “Strategic forecast of GHG emissions of Arkhangelsk PPM up to 2030” switching to natural gas will reduce GHG emission by 50% against the emissions of 1990 (the base year).

According to Heinz Zinner, the Chairman of the Board of Arkhangelsk PPM, for the past 12 years investments of Pulp Mill Holding, the mill’s shareholder, into environmental activities have exceeded 10 billion rubles. “We stick to high environmental standards at enterprises of our Holding, taking care of the environment. It is rare that installation of new equipment can increase capacity or decrease costs, but we upgrade production facilities in order to keep Novodvinsk town and Arkhangelsk region environmentally safe, healthy and attractive for living,” – Mr. Zinner said.

Vladimir Krupchak has joined the Board of Directors of Titan Group

Vladimir Krupchak, the Investment Advisor to Pulp Mill Holding, has become a member of the Board of Directors of “Titan” Group and CJSC «Sawmill 25». The respective decision was taken by the majority of two collegial bodies of the companies’ management at the meeting, which took place a week ago.

The field of Vladimir Krupchak’s activity will include the issues concerning the Holding’s development strategy, and its wood-processing division – CJSC «Sawmill 25», as well as common conceptual solutions on the companies’ investment policy, including JSC Arkhangelsk PPM, in order to achieve a multiplication effect within the framework of the existing VIS (vertically integrated structure).

 

 

Reference

The “Titan” Group of Companies is the largest logging and wood-processing operator in the North-West of Russia

Founded in 1990.

The “Titan” Group of Companies comprises 9 logging enterprises, LLC « Belomorskaya splavnaya kompaniya» (wood transportation), and the largest wood-processing enterprise in the European part of Russia -CJSC “Sawmill 25”.

The calculated felling ratе equals to 3,2 million cubic meters.

The “Titan” Group of Companies employs over 4 thousand people in the Arkhangelsk region.

Annually tax payments to budgets of all levels, fees to extra-budgetary funds exceed 1 billion rubles.