Baikalsky to raise pulp production 15-20% in 2005: CEO

May 26, 2005. /Lesprom Network/. Baikalsky pulp and paper enterprise (Irkutsk region, Russia) intends to increase market pulp production 15-20% to 200 thousand tons in 2005 compared to 2004, Baikalsky CEO Yuri Logachev said. According to Yuri Logachev, in 2005 the enterprise will have to fulfill a number of tasks to optimize operation. The main problem experienced by the enterprise that influenced the production process is the lack of own forest resources base. Yuri Logachev said that the task of the new management (Yuri Logachev was appointed CEO on May, 14 2005) is to resume the cooperation with the raw timber suppliers and increase production. Continental Management CEO Vyacheslav Krylov said that net profits earned by the enterprise in 2004 reached RUR 1.2 million. 85% of the enterprise’s goods were exported to China. The profits reduction were caused by raw timber deficit, the increase of power resources cost. Vyacheslav Krylov said that world pulp prices are increasing 1-2% annually which is not comparable with the Russian inflation rates. In the nearest future Baikalsky will not change its sales strategy, because ‘China appears to be very attractive both from the geographic and economic points of view’, Vyacheslav Krylov said. He added that China had own pulp and chemical-termomechanical mass enterprises with the capacity of 1 million tons/yr and the subsector is continuously developing, therefor Baikalsky management is considering alternative markets..