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).




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.

Pulp Mill Holding and Andritz signed a contract on supply of a PrimeLineTM W6-XT tissue machine to Arkhbum Tissue Group LLC in Vorsino (Russia)

Andritz Group (Graz, Austria) and Pulp Mill Holding (Vienna, Austria) signed a contract on supply of a new PrimeLineTM W6-XT tissue machine to Arkhbum Tissue Group LLC for a new plant for the production of sanitary and hygienic products in the area of the Vorsino Industrial Park in the Kaluga region.

The amount of the transaction is not disclosed.

According to Vladimir Krupchak, the Investment Advisor to Pulp Mill Holding and the supervisor of this investment project, within the framework of the agreed contract Andritz will supply and install on the turnkey basis a new PrimeLineTM W6-XT tissue machine with the capacity 70 thousand tons of various tissue products made of 100% virgin pulp, 5.6 meters width and the design speed 2,100 meters per minute.

The start-up is scheduled for 2019.

According to Heinz Zinner, the Chairman of the Board of JSC “Arkhangelsk Pulp and Paper Mill”, construction of a new mill of Pulp Mill Holding “Arkhbum Tissue Group” will solve the problem of import substitution of sanitary and hygiene products in Russia. It will be the most advanced and highly productive tissue plant in the country, due to use of the advanced. «But our Group of companies solves the tasks within the strategy — we provide synergy of the Holding’s companies, which will allow to meet the challenges of the day and remain highly competitive», —Dr. Zinner said.

As the specialists of Andritz remarked, the combination of a steel Yankee and the latest PrimePress XT shoe press technology enables a high drying capacity and achieves remarkable cost savings and operational flexibility compared to systems operated with conventional presses.

The tissue machine is equipped with a new Andritz ShortFlow system, which allows to change grade/color at the tissue-machine very fast.

Additionally, the drying section of the machine is equipped with a ReEvaporation system to reduce drying energy costs even further. The system uses “waste heat” in the hood exhaust to recover steam from the condensate stream and thereby it reduces the amount of “fresh” steam required.esides the drying part of the machine

These technical and technological characteristics will significantly minimize operational costs.

Andritz will also provide process pumps, piping and instrumentation as well as on-site services.

As Irina Galakhova, Executive Director of @Arkhbum Tissue Group” LLC told, the construction work at all infrastructure facilities of the company was completed at the site of a new plant. Now the main contracts are being signed.

As previously reported, realization of Pulp Mill Holding project is divided into two key stages. At the first stage the tissue machine supplied by Andritz AG (Austria) will be installed in Vorsino with the capacity 70,000 tonne/yr, two Futura (Italy) converting lines for the production of toilet paper and paper towels with the capacity 800 million conventional toilet paper rolls per annum, automated TMC packaging line (Italy), palletizer and pallet wrapping machine Electric 80 (Italy).

The planned capacity of the fist production line of the new plant of “Arkhbum Tissue Group” LLC is 70,000 tonne/yr of sanitary and hygienic products, with further increase up to 210,000 tonne/yr (2nd production line).

The company intends to pay substantial tax payments to the budgets of the local and federal levels.

The number of new working places only at the first stage will amount to 350 persons.

Pulp Mill Holding GmbH — an Austrian-German group (headquarters in Vienna, Austria), which unites a group of enterprises producing paper, cardboard and corrugated packaging.

The company was founded in 2001.

The holding owns 100% stock of JSC «Arkhangelsk PPM» on the territory of Russia. The group JSC «Arkhangelsk PPM» includes JSC «Arkhbum» (logistics, corrugated packaging production in Podolsk and Istra branches), LLC «Arkhbum Tissue Group».

V. Krupchak: Arkhangelsk Pulp and Paper Mill continues realization of the II stage of the investment project “Reconstruction of cardboard production”

The key project of the Development Strategy of Arkhangelsk Pulp and Paper Mill is the priority investment project (PIP) in the area of forest development “Reconstruction of cardboard production”. As Vladimir Krupchak, Investment Advisor to Pulp Mill Holding, explained,  in 2018 the mill would continue the implementation of the 2nd stage of the PIP, where the key focus was the reconstruction of the second board machine (KDM-2), having invested 4,8 billion rubles this year.

Vladimir Krupchak recalled that the completely updated board machine No.2 at Arkhangelsk Pulp and Paper Mill would be the largest and the most modern cardboard machine in Russia. The cost of this project, taking into account construction and installation works, amounts to 7,5 billion rubles.

He also said that the equipment supplier – the Finnish company Valmet Technologies Inc – offered radically new technical solutions based on BAT. Thus, the new vacuum system will increase the productivity of the machine and reduce fresh water consumption; the new shoe press will improve the quality of kraftliner and fluting and increase energy efficiency in general; a new reel section and the parent reel transferring system will almost completely eliminate manual labor.

Vladimir Krupchak stressed that the reconstruction of BM No 2 and installation of the energy-efficient equipment would reduce the environmental load  such as water consumption, water disposal and energy consumption. Reduction of energy consumption will amount to 5%, decrease of process water consumption – 12.

Vladimir Krupchak: «Pulp Mill Holding’s strategic plans to build a new testliner plant in the Southern region of Russia»

Following the policy priority of the Russian state in deep wood processing, Pulp Mill Holding reduces export of pulp and containerboard producing products with high added value. On November 29, 2017, Vladimir Krupchak, Investment Advisor to Pulp Mill Holding, made a report at the Third International Conference «Russian Pulp and Paper Industry– New realities, New opportunities» in Vienna (Austria) in which he told that for the past years Arkhangelsk Pulp and Paper Mill had participated in building of two corrugated cardboard and containers plants in Podolsk and Istra districts of the Moscow region, where the mill supplied containerboard and fluting. In 2018 after commissioning of the second stage on the Istra production site, the output of corrugated products of Podolskiy and Istra plants will grow up to 600 million square meters per year.

The strategic plans of the Pulp Mill Holding’s development, in addition to previously announced projects, such as the construction of tissue plant in the Kaluga Region, where Arkhangelsk Pulp and Paper Mill will supply pulp, include building of testliner plant in the Southern region of Russia. According to Vladimir Krupchak, currently the holding is choosing an acceptable site for plant construction and estimating the purchase of 5 m cardboard machine. Besides, Pulp Mill Holding is considering a possibility to build one more corrugated cardboard plant.

Speaking about the Strategic Development Program of Arkhangelsk Pulp and Paper Mill, Vladimir Krupchak noted that successful implementation of the priority investment project (PIP) “Reconstruction of Cardboard Production” with the investments about 11 billion rubles was realized only due to close cooperation with the partners. Today Arkhangelsk PPM being in tight connection with its subsidiary Arkhbum and Titan Group of companies is one of the largest vertically-integrated entities in the Russian timber industry, confirming the effectiveness of this approach of business organization by the evident success.

“Undoubtedly, the growth of production with high added value directly depends on the full and stable timber supply, but today increasing capacities of timber enterprises in the Arkhangelsk region faced the growing shortage of raw materials for deep wood processing,” he stressed. Vladimir Krupchak announced that at the beginning of 2017 the total estimated cutting area in the region amounted to 24.5 million cubic meters, the volume of logging – 12.7 million cubic meters, it means that the utilization of the estimated cutting area does not exceed 52%.

He told that within the framework of the priority investment project Arkhangelsk Pulp and Paper Mill leased forest fund on the preferential basis in the amount of 1,06 million cubic meters while the stated demand was 1,67 million cubic meters. Thus, the plant’s demand for wood raw materials was not fully satisfied, the deficit of pulpwood exceeded 600 thousand cubic meters.

“If we look at the long-term demand in forest resources necessary for modernization and development of such leading timber enterprises as Arkhangelsk Pulp and Paper Mill and Sawmill 25, then the deficit of hardwood and softwood pulpwood harvested in the Arkhangelsk region will amount to nearly 3 million cubic meters by 2025, sawn timber – 900 thousand cubic meters,” – the speaker said.

Proposing a mechanism to solve the problem with the wood deficit for realization of the PIP, Vladimir Krupchak mentioned the existing legislative norms. In particular, he explained that in the Regulation of the Government of Russia No. 419 (clause 10.1), there was a rule that if two or more applications for one and the same forest plot for realization PIP are received, the regional authority selects an applicant in accordance with approved evaluation criteria of investment projects. At the same time, this list should include criteria of rational use of the harvested wood, energy consumption reduction and increasing output of import-substituting products.

Vladimir Krupchak noted that nowadays the amendments to the “Regulation on preparing and approval of the list of priority investment projects in the field of forest development” are under discussion. However, no amendments to clause 10.1 of the Regulation has yet been made, therefore, the criteria adopted at the regional level were not specific, that in the situation of the forest resources deficit and intense competition hinders the justified distribution of the forest resources among the leaseholders.

Nevertheless, according to him, the leaseholders and forest users have the objective indices of contribution/investments into the forest plots development, such as costs on forest road construction and maintenance, acquisition of logging equipment, expenses for forest management and reforestation, etc.

In addition, as a result of the investment projects realization, the products with various depth of processing level, different added value, which should be taken into account along the whole technological chain, are manufactured, the taxes are paid to the budget.

Vladimir Krupchak illustrated his thesis on the example of Arkhangelsk Pulp and Paper Mill, which pays the largest amounts of taxes into the Russian budget while implementing the priority investment projects in the Arkhangelsk region. If calculated per 1 cubic meter of wood, in 2015 the taxes paid by the mill amounted to more than 2 thousand rubles. It exceeds the average indices of tax payments at PIP realization in Russia by 760 rubles per cubic meter.

“I believe that at the regional level more specific and justified criteria for the assessment of PIP should be developed and approved, which will allow to lease the forest fund to the most efficient and responsible investors,” he said.

Vladimir Krupchak proposed to take into account such criteria as the level of deep wood processing, which should be measured by the total added value along the technological chain, the number of created highly productive working places, the improvement of ecological state of industrial production (reduction of harmful emissions into the atmosphere and discharges into water), investments into social and transport infrastructure.

“In this case, effective and, certainly, efficient state support in realization of the priority investment projects will allow us to be successful in solving economic and environmental problems aimed at GDP growth in the forest complex and increase of tax payments,” – Vladimir Krupchak summed up.