8. /Lesprom.com/. Production curtailment at Ilim Vostok affiliates will amount to 25-30%, at Ilim Zapad affiliates - to 10% approximately. The reason of production curtailments is decreasing demand of Chinese companies for pulp.
Ilm Group curtails pulp production
Nov 18, 2008. /Lesprom.com/. Ilim Group announced pulp production curtailments, Russian newspaper Vedomosti writes. In Q4 Group affiliates in Bratsk and Ust-Ilimsk (former Bratsk and Ust-Ilimsk timber processing complexes) will produce 25-30% less pulp than planned, which is about 200,000 tons per month, reports Group representative Elena Konnova. Curtailments at Koryazhma affiliate (former Kotlas pulp mill) will amount to 10% approximately (annual production output is 1 million tons).
One of the two production lines in Bratsk and Ust-Ilimsk will be shut down, second lines at both plants will work half-steam. Workers and administration affected by shutdowns will be sent on leaves with paying 2/3 of salary, says Konnova.
The reason of production curtailments is decreasing demand of Chinese companies for pulp by 30% approximately, Konnova says. Domestic market «is in better condition, but recession is beginning to show»; demand on European markets dropped by about 10%. The recession started, forecasts for 2009 are not optimistic, notes Konnova.
According to Company's press service, 'Ilim-2014' strategic investment plan which entails universal modernization and construction of new plants remains in general. However, limitations of global liquidity make the company postpone two largest investment projects scheduled for 2009. Nevertheless, current investment projects, like purchasing new timber harvesting equipment, will go on.
