In 2021, Ilim Group's operating EBITDA totaled $1.1 billion. The Company allocated $594.5 million for implementation of its investment projects, including $115.96 million for environmental initiatives, implementation of which will allow Ilim to reduce its emission and discharge parameters in the short term. Last year Ilim’s Koryazhma Mill, Russia, received an integrated environmental permit confirming its compliance with high environmental safety standards.
China remains a priority market for Ilim Group. With 25 years of operations in China celebrated in 2021, the Company intends to expand its presence in all Chinese regions.
In 2021, the Company continued to implement the Big Ust-Ilimsk project, its flagship initiative with a CAPEX worth $1.3 billion. Start-up of Ilim’s new pulp and paper mill is scheduled for the end of 2022. Ilim will allocate $309.5 million for implementation of this project in 2022.
In 2021, Ilim's exports to China totaled 1.4 million tons. The Company is one of the leaders in terms of bleached softwood pulp volumes delivered to China. In 2021, Ilim Group also increased kraftliner volumes exported to the Chinese market. Pulp and paper mill start-up as well as upgrade of the existing facilities will allow the Company to increase the aggregate volume of its exports to China up to 2.4 million tons by 2025.
Ilim places a strong focus on reforestation activities, which cover the area of 50 thousand ha every year. In 2022, Ilim plans to build a new forest nursery in Bratsk with a capacity of 7 million ball-rooted seedlings per year with a possibility to expand the nursery capacity up to 12 million seedlings per year. The new nursery will ensure availability of the planting stock for Ilim’s Branches in Bratsk and Ust-Ilimsk as well as for the new pulp and paper mill.
Thus, Ilim allocated $11.3 million (RUB 833 million) to support social and infrastructure projects in 2021.
Ilim Group produced 3.64 million tons of finished products, thus retaining leadership in the Russian pulp and paper industry. Pulp still constitutes the major share (2.16 million tons) of Ilim’s production volumes. Guided by the adopted strategy, Ilim continued to increase the share of packaging materials in its product portfolio. Last year this segment accounted for about a third (815 thousand tons) of the Company’s production volumes.
Created in 2007, Ilim Group is a 50/50 joint venture between International Paper and Ilim Holding, and the largest integrated manufacturer of pulp and paper in Russia with production facilities in the Leningrad, Arkhangelsk and Irkutsk regions. Ilim Group operates major Russian pulp & paper mills in the Arkhangelsk, and Irkutsk Regions, having branches in Koryazhma, Bratsk and Ust-Ilimsk, as well as forestry branches, procuring raw materials to the production facilities, and two corrugated cardboard plants in the Leningrad and Moscow Regions. The Company’s total annual volume of pulp and paper production exceeds 3 million tons.
