Ilim Group allocated over RUR 6 billion ($203 million) for priority investment projects implementation

Oct 14, 2009. /Lesprom Network/. Paul Herbert, CEO of Ilim Group, took part in the 11th International Forestry Forum held in St. Petersburg with presentation «Ilim Group strategy through the crisis period», the company said in a press release received by Lesprom Network. The presentation put an emphasis on insufficient capital investments as major problem in Russian P-and-P industry. Among the causes of inadequate funding Mr. Herbert mentioned the underdeveloped infrastructure, hindered access to forest resources, hard questions of property, high country risks. However, said Mr. Herbert, Russian pulp and paper industry retains its highly competitive position at the global scale. Mr. Herbert also described the anti-crisis action plan elaborated and implemented by the company to maintain liquidity and financial stability during the global financial crisis. Key efforts of the action plan were focused on slowing back production, refinancing 20% hard currency loans into rubles and conversion to new products demanded in the market. Implementation of these efforts allowed the Company to improve its market position, to fulfill all commitments to workers, partners and state budgets, and also to implement its previously initiated investment plans. Among them was the purchase of more than 200 units of forestry machinery in Siberia and start-up of the world’s largest NSSC plant in Koryazhma. The total amount of funds allocated by Ilim Group for priority investment projects implementation in 2008-2009 was over RUR 6 billion. The company's plans for the nearest future envision continuing equipment modernization and costs cut. «Following the recovery of demand for softwood pulp in China, Ilim Group intends to focus on the technical parameters of constructing a new pulp line in Bratsk. Moreover, due to the prospects of growing demand for office papers in Russia, the company considers the option of installing a new paper machine in Koryazhma», said Paul Herbert.