In December 2008 Arkhangelsk pulp mill, Russia, decreased production capacities load to 70%

Feb 16, 2009. /Lesprom Network/. Arkhangelsk Pulp & Paper Mill OJSC (Arkhangelsk region, Russia), the second largest producer of pulp and containerboard in Russia, decreased production capacities load to 70% of the January 2008 level, as said in the company’s Q4 2008 report. «Under conditions of the global crisis decline in global pulp prices amounts up to 50%, in cardboard prices – up to 30%. Pulp consumption level has decreased by 10-15% globally, a number of enterprises in North Europe and North America have shut down. Global pulp stocks in ports and warehouses of producing companies worldwide have grown up to 50 days of consumption», as said in the report of Arkhangelsk pulp mill, «These factors influenced Russian pulp & paper industry also. Pulp and cardboard prices on the domestic market have decreased by 10-15%». Due to lack of funds the company has to freeze some investment projects, the report says. For instance, investment cost of the project of cardboard production reconstruction in 2009 was cut from Eur 40 million down to Eur 7.5 million, start of the construction of a new neutral sulfite semichemical pulp cooking line is postponed for a year. This project would enable to improve cooking efficiency up to 308,000 tons. Investment costs of the project of cardboard production reconstruction during 2008-2013 are planned on the level of Eur 149.4 million. In 2008, the company invested Eur 5.7 million of own funds, in Q1 of 2009 it is planned to invest Eur 1.3 million. As said in the company’s report, in order to implement the plan the enterprise needs state support, as own funds of the company are insufficient to finance investment projects.