Jan 17, 2007. /Lesprom Network/. Zakhar Smushkin, Ilim Pulp’s chairman of the board met Alexander Tishanin, governor of Irkutsk region in Irkutsk on January 12. The meeting was also attended by heads of the corporation’s largest regional mills — Vladimir Batischev, general director of Ust-Ilimsk pulp mill and Vladimir Sokolovsky, general director of Bratsk pulp and containerboard mill. During the meeting, Zakhar Smushkin explained to Alexander Tishanin the essence of the restructuring process, as well as prospects and objectives of the strategic alliance with International Paper. One of the basic points of the partnership agreement is a vast investment program for the corporation’s mills, which is a unique project for the whole of the Russian forest industry. The joint investment program currently developed by Ilim Pulp in co-operation with International Paper representatives suggests that $770 million will be invested in the corporation’s Irkutsk mills by 2011. Capital investment in pulp-and-paper mills is to comprise the main part of the investment, while about $200 million will be invested in the wood supply enterprises. The investment program will enable the corporation to significantly extend its manufacturing facilities and raise product quality. It is planned to increase yearly commodity output to 1.9 million tonnes by 2011, 529 000 tonnes (39%) up from the level of 2006. Besides enhancing market pulp and containerboard output, the corporation is planning to extend the range of pulp produced by Ust-Ilimsk pulp mill and install necessary facilities to launch new production at Bratsk pulp and containerboard mill. Apart from that, Ilim Pulp intends to invest over $100 million in Irkutsk region-based woodworking mills not to be included in the Ilim Pulp — International Paper joint venture. Summing up the results of his conversation with Irkutsk region governor, Zakhar Smushkin said it was a highly constructive meeting: “Rarely has the region seen such a serious investment project lately. We see it as a crucial factor that the investment program, when realized, will promote development of infrastructure, including road construction, Ust-Ilimsk airport rebuilding and many other important projects. The final version of Irkutsk region investment program will be discussed with the region’s authorities in March”. Ilim Pulp Irkutsk region mills produced 1 371 000 tonnes of pulp and paper products, logged 5.1 million cubic meters of timber, and turned out 737 000 cubic meters of woodworking products. About $40 million was invested in maintaining and development of Irkutsk region mills. Among the realized investment initiatives is a large investment project that allowed Ust-Ilimsk pulp mill to raise its bleached market pulp output 26% to 630 000 tonnes. Ilim Pulp and International Paper signed an agreement of intent in October 2006 to establish a joint venture in Russia. The corporation also announced in the end of 2006 it intends to transfer all its mills to a single share.