Ilim Pulp to prepare new development strategy in 3-5 months

Nov 04, 2004. /Lesprom Network/. Ilim Pulp will prepare a new development strategy, Ilim Pulp information policy director Svyatoslav Bychkov told Lesprom.ru. According to Mr Bychkov, the new strategy will be worked out after the corporation settles all the ‘legal issues and Promstroibank representatives will enter Ilim Pulp board of directors.’ ‘We agreed to sacrifice property in order to preserve production dynamics’ Svyatoslav Bychkov stressed ‘It is important that a non-profile aluminum industry investor that has not made any progress in timber sector during the recent years, will formally remain in the sector, while Ilim Pulp, a strategic market player, will continue operation.’ As Lesprom.ru reported earlier, in October Ilim Pulp vice-president Frank Graves announced the plans to double the production on Saint-Petersburg cardboard and polygraphy enterprise during the next 2 years, as well as to build a new enterprise from a scratch. However Mr. Graves would not disclose the details of the plans saying: ‘We should win the ‘war’ first. We are currently working on this very complicated agreement and we are more likely to resolve it soon.’ As Lesprom.ru reported earlier, in line with the reached agreement, Promstroibank transfers 20% of Arkhangelsky shares to Continental Management, cedes its stake in Continental Managemens and receives 25% of Ilim Pulp shares with the possibility to increase the stake to 50%. Owner of Continental Management Oleg Deripaska stopped the conflict with Ilim Pulp and will now deal with Arkhangelsky pulp and paper enterprise only, Promstroibank SPB co-owner will co-own Ilim Pulp with Vneshtorgbank.