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– Russia is still hoping that financially strong companies are going to invest heavily in its domestic paper and pulp industry in the coming months and years. Here, international groups such as SCA, Mondi and Ilim Group, in which International Paper has a stake, are an exception. Russian business moguls, so-called oligarchs, which many a politician has been counting on, have so far been keeping a low profile.
Apart from this, modernisation in the packaging segment, for example, is at least making progress through modernisation of certain production sections or start-ups of second-hand paper machines. Observers are following with interest the developments in medium-sized packaging companies or at Continental Management, which is planning to invest in several facilities simultaneously.
Another interesting investment project is reported from the magazine paper segment. CBK Kama, the subsidiary of Investlesprom, has announced the start-up of an LWC paper machine for this year, becoming the first Russian company to produce this paper grade.
Newsprint manufacturers’ capacity enlargement, on the other hand, seems to have been put on the back burner. Russia has an annual output of roughly 2 million t of newsprint, approximately 85% of which is accounted for by the companies Kondopoga, Volga, and Solikamskbumprom. These manufacturers – along with many others – claim to have elaborated and finished plans for new capacity projects that they are unable or unwilling to realise on their own, however.
Russian players are said to still have a shortage of venture capital. Making it all the more difficult to set up new paper capacity is the ailing raw-material side of the market. Experts say there has been scarcely any further development in the forestry infrastructure to the extent that obtaining wood has become more difficult.
In this segment, many experts see sustainable opportunities for Russian players: demand for pulp is good worldwide. The proximity to China in particular offers good business prospects for Russia. Experts see fairly good prospects on the pulp markets in Western Europe as well under certain circumstances.
One of the decisive questions here, say experts, is whether or not Russian managers’ attitude towards partners will change. Insiders are convinced that the forest business could boom in Russia, too, as soon as modern expertise and knowledge of the specific nature of Russia go hand in hand. “Russia will never become a growth country on the strength of lip service alone,” say some.
31.08.2011
Markets
- German paper market still suffering from seasonal effects and inventory destocking
- Sharp increase in worldwide pulp stocks in July
- World market pulp statistics
- Inventories and consumption of pulp consumers in Europe
- Will India’s pulp market follow in China’s footsteps?
- Russian pulp and paper industry still hoping for strong investors
- Spain’s new waste legislation gives rise to debates in the recovered paper industry
- Expansion plans in the pulp sector will lead to substantial growth in hardwood pulp capacities
- Stagnation in Finnish paper production in first half-year
- Baypapier: energy policy is threat to paper industry
- More capacity increases reported again in Europe
Companies
- Ahlstrom considering job cuts at Karhula and Mikkeli mills
- Segezha Packaging mill in Saransk standing still after fire
- Italy’s paper industry calls for change
- Mayr-Melnhof establishes third packaging site in Turkey
- Kipas Holding to enter recycled containerboard market
- Hunsfos Fabrikker in financial dire straits
- Bong to cease envelope production in Belgium
- Tullis Russell to axe 43 jobs in Markinch
- ICT commissions a new tissue machine in France
- New Page to indefinitely close Port Hawkesbury mill
- Abitibi Bowater invests and cuts jobs at Iroquois Falls mill