Russia’s Arkhangelsk pulpmill to raise prices for writing and offset paper grades by 6% in May

Moscow, Apr 07, 2009. /Lesprom Network/. Arkhangelsk pulp and paper mill (Novodvinsk town of Arkhangelsk region, Russia) is going to raise prices for writing and offset papers in May, as reported by Vedomosti newspaper referring to the plant’s sales and marketing director Anton Voitov. As Mr. Voitov noted, the company is also going to increase pulp prices, as the demand for pulp on behalf of Russian customers restored. «We decrease the export share of shipping, European demand still did not restore», reported Voitov according to Vedomosti. According to Voitov, since April prices started to grow: label paper price increased by 6% up to 24,000 roubles per ton on the average (warehouse prices, VAT exclusive), this increase offset decline in late 2008. As Lesprom Network reported earlier, in December 2008 Arkhangelsk pulp mill curtailed production volume by 40% and started to decrease prices. However, as Mr. Voitov reported Vedomosti, since March the plant fully loaded capacities producing paper (up to 5,000 tons monthly) and pulp (20,000 tons monthly). Voitov relates the revival on the pulp and paper products market to falling Russian rouble exchange rate. 63.5% of shares of Arkhangelsk pulp & paper mill OJSC belong to Austria’s Pulp Mill Holding, 33.6% – to offshore companies representing interest of Bazovyi Element company. The enterprise produces paper, pulp and wood fiber boards. Net benefit of the company in 2008 calculated using Russian accounting standards was 371.14 million roubles compared to 945.21 million roubles in 2007.