Novolyalinsky Pulp and Paper Mill, a key enterprise in Sverdlovsk region, Russia, shut down in December due to economic and staffing issues, according to Russian media reports. The plant produced paper bags and other packaging materials. It had already begun layoffs, citing a severe worker shortage. The pulp shop closure left only 50 employees for a facility requiring 130, triggering further job cuts across divisions.
By December 21, 49 employees were dismissed, with another 140 set to leave by March 13, 2025. The paper shop, reliant on in-house pulp, also downsized as production halted. The plant’s union warns that finding new jobs locally will be difficult.
Russia’s broader labor crisis, worsened by war-related conscription and emigration, has intensified workforce competition. With unemployment at 2.3%, companies struggle to find workers, pushing wages up faster than inflation. The industry also faces falling exports since 2022. Supply chain shifts to China and India are costly, and paper prices have dropped 20–27%.
Environmental compliance remains the biggest challenge. The plant’s wastewater treatment facility, handling both industrial and municipal waste, was found exceeding legal pollution limits.
