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.

The Adviser to the investment activities of Pulp Mill Holding: Signing of loan agreements with UniCredit Group is an important step in the modernization program of APPM

Signing of two loan agreements between Pulp Mill Holding (Austria) and UniCredit Bank Austria AG for a total amount of more than 80 million euros is an important step in the modernization program of Arkhangelsk Pulp and Paper Mill.  Vladimir Krupchak, the Adviser to the investment activities of Pulp Mill Holding made such a comment on the financial transaction.

The relevant financial documents were signed on 29 June 2017 in Vienna (Austria) at the Board of Directors of JSC “Arkhangelsk PPM”.

The loans raised will be spent on financing of the technical re-equipment program of Arkhangelsk Pulp and Paper Mill during 2017-2018 years, including construction of a new evaporator plant and reconstruction of the Board machine No. 2. Both projects are an important part of the priority investment project in forest development “Reconstruction of Board Production” registered in the Ministry of Industry and Trade of the Russian Federation.

It must be recalled that total investments of APPM up to 2020 will exceed 23,0 billion rubles. The mill is implementing the second stage of the priority investment project “Reconstruction of Board Production” included by the Ministry of Industry and Trade of the Russian Federation into  the list of the priority projects for the  Russian economy, the cost of which is 8.8 billion rubles.

Valmet Corporation won the tender on modernization of the causticization and lime recovery No.3 at APPM

On January 27, 2016 in Vienna Pulp Mill Holding held the tender on modernization of the causticization and lime recovery No. 3 of the pulp production at OJSC “Arkhangelsk PPM”. According to Vladimir Krupchak, Investments Adviser of Pulp Mill Holding, Valmet Corporation won the tender.

The modernization will include works on replacement of the outdated white-liquor filters, including washing filters of alkaline white mud, installation of a new lime slaker classifier, etc. at the causticization section of the causticization and lime recovery No. 3. The main objectives of the modernization will be replacement of the outdated and worn-out equipment, increase efficiency of the white liquor, and hence, of the cooking boiler, improving of the white liquor quality and realization of the oxygen-alkaline delignification stage.

The economic effect after reconstruction of causticization section of the causticization and lime recovery No.3 will amount to RUR 37,5 million per annum.

According to Vladimir Krupchak, it will be the first stage in modernization of the pulp production at APPM. The second stage will include reconstruction of the lime kiln with the purpose to increase lime productivity.

Cost of equipment (net of the costs of assembling works) – EUR 8,2 million.

At the same time in Vienna Pulp Mill Holding held the tender on modernization of BM- No.2 of OJSC “Arkhangelsk PPM”. The winner of the tender was not defined.