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    History

    2019
    May 28, 2019
    On May 24, 2019 Ljubljana hosted the annual Congress of EUROSAC (the Association of European Manufacturers of Paper Packaging), where the Segezha Group (part of Sistema JSFC) received the Eurosac Silver Grand Prix for a new packaging solution for the dry mix sector, using the innovative SKE i4 paper. The members of the judge panel noted the significance of the new packaging solution by Segezha Group and the fact that better weight and usage characteristics of the sack correspond to the main global trends of environmentally friendly and lean production.
    May 17, 2019
    Glulam beams and glulam planks by Sokolsky DOK (part of Segezha Group, Sistema JSFC) have earned Golden Quality Signs “All-Russian Brand (3rd Millennium).” The 21st Century Sign of Quality is a national program that promotes high-quality commodities, services and advanced technologies on the Russian market, as well as help integrate these products into the global market. This is the first time Sokolsky DOK gets the award.
    May 7, 2019
    Before the Victory Day, Lesosibirsk of Krasnoyarsk Krai hosted the final ceremony of the Grant Competition announced in Segezha Group (part of Sistema JSFC) for the best social project of the “Kind Woods of Siberia” Charity Program.The projects were presented in five nominations: Ecology, Urban environment, Education and Culture, Sport and Healthy Lifestyle, I Love Lesosibirsk. 15 of the presented projects received grants for implementation. The competition seeks to form environmental consciousness, create and rebuilt public spaces and new forms of recreation in the city, introduce new sport event formats and new hobbies for children and adults.
    April 17, 2019
    The annual report of the Ministry of Trade and Industry of the Russian Federation, entitled “On Main Results of Activities in 2018 and Goals and Tasks for 2019” the authors of the report mentioned two projects implemented by Segezha Group of forestry enterprises, and a project to build a pulp-and-paper mill in Siberia.The noted projects include the launch of new production facilities of the group at LLC Vyatka Plywood Plant (Kirov Region), which produces 100,000 cubic meters of premium plywood a year, with the amount of investments at RUB 6.7 billion, and the launch of a pellet-making plant at Lesosibirsky LDK No. 1 (Krasnoyarsk Krai). Its output capacity is 70,000 tons of products and the volume of investments is RUB 817 million. The list of projects planned for implementation, as described in the section of the report on support of construction of large pulp-and-paper mills includes a promising new investment project of Segezha Group to build a biotechnology complex that will produce +900 thousand tons of pulp a year. The volume of planned investments into the project exceeds RUB 90 billion.
    April, 12, 2019

    The prizes of the 2nd Russian Professional Prize “Change Management. Visionaries” presented by +1 projects were awarded in Moscow on April 11. Representatives of business corporations and industry communities received awards for projects in the sphere of sustainable development and corporate social responsibility. Segezha Group  has been awarded victory in the nomination for “Ecology. Business” for the project “Introducing bioenergy technologies in Forest Industry. The company’s application centered around two current “green” projects: the launch of the multi-fuel boiler that uses bark and wood as fuel at Segezhsky PPM in Karelia, and the pellet plant on the industrial site of Lesosibirsky LDK No. 1 in Krasnoyarsk Krai.

    March 29, 2019
    On March 29, as part of the business program of the Krasnoyarsk Economic Forum a cooperation Agreement was signed between the Governor of Krasnoyarsk Krai and Segezha Group.
    Within their respective authority, the parties agreed to implement an investment project for construction of a biotechnological complex (BTC) on the territory of Yeniseisky District to produce bleached sulphate pulp, as well as to ensure security of wood raw materials supply in accordance with applicable current law of the Russian Federation. The forest industry group of companies and the region will work together to create favorable conditions for comprehensive socio-economic development of the Krai and to improve the quality of life of the local population
    March 29, 2019
    On March 29, as part of the business program of Krasnoyarsk Economic Forum Segezha Group and FESCO Transport Group signed an agreement of intent. 
    The parties agreed to work together for mutual benefit in the sphere of organizing cargo transportation and development of optimal logistical solutions in the process of modernization of the Segezha pulp and paper mill in Karelia, construction of a new plywood mill in the town of Galich, Kostroma region, a new biotechnological complex in Krasnoyarsk Krai and other Segezha Group projects. 
    March 26, 2019

    Segezha Group announced its unaudited consolidated financial results prepared in accordance with International Financial Reporting Standards (IFRS) for the full year 2018. Segezha Group is a portfolio company of Sistema (LSE: SSA, MOEX: AFKS).

    2018 Financial Highlights:

    • Revenue grew by 24.5% year-on-year to RUB 54.4 billion.

    • OIBDA rose by 79.0% year-on-year to RUB 12.9 billion. The OIBDA margin was 23.8%.

    March 11, 2019
    Ksylotech-Syberia Pellet Plant of Segezha Group, operating on the site of Lesosibirsky Woodworking Plant No. 1 received Quality Class EN plus A1® Certificate The pellet products of the plant are awarded Class A1 according to the European standard of pellet product (white pellets). These pellets are produced of debarked wood, and have the minimum ash content of less than 0.5%.
    February 28, 2019
    Siberian assets of Segezha Group - JSC Lesosibirsky LDK No. 1 and Xylotech-Sibir LLC - have successfully completed Sustainable Biomass Program (SBP) international certification. The audit was performed by NEPCon - a non-profit global organization that works to promote sustainable land use and searches for solutions of the climate change problem.
    There are numerous requirements for candidates to receive the SBP certificate, including requirements for sustainable forest management, legal origin of wood products and lawful commercial practices, as well as reporting requirements for the entire energy and carbon supply chain.

    February 21, 2019
    According to the strategy of sustainable development in the field of energy efficiency, enterprises of the Paper and Package Division and the structure of Segezha Group management company in Petrozavodsk underwent a procedure of international certification and received ISO 50001 conformity certificates “Energy Management System” in February.
    External certification audits of the management company and enterprises of the Paper and Package Division were held in the end of 2018 by TMS RUS LLC – a representative of TÜV SÜD Management Service GmbH, a global leader in field of management system certification.

    February 04, 2019
    Segezha Group Rated as One of Top 50 Russian Companies in the Corporate Transparency Rating. The results of the corporate transparency survey among the largest Russian companies in 2018 were announced by the Russian Regional Network for Integrated Reporting (RRN).
    According to the rating, Segezha Group, a forest industry enterprise and part of Sistema JSFC, takes the 42nd position in the corporate transparency rating of major Russian companies. The RRN assessed the level of corporate transparency in the total of 1,141 companies. The report states, the Segezha Group reached the 2nd level of transparency in 2018 (scoring 34 out of 100 points), i.e. its level of transparency corresponds to international reporting standards.

    January 30, 2019
    In the framework of the third phase of the Segezha Group (Sistema JSFC) investment project on upgrading the Segezha PPM a modern boiler plant using wood residue was put into operation. A multifuel boiler (MTK) producing steam for technical processes of the mill started operating in the mode of commissioning and start-up.The new 37 meters high MTK by the Finnish company Valmet Oy comprises several industrial installations: an MTK-11 with a capacity of 120 tons per hour, a chipping machine (Finland, Saalasti Oy) providing 100 tons of chipped wood (fuel) per hour, and a fuel store of more than 3,500 m3 made by Vecoplan AG (Germany) to be brought into operation in May 2019, which is required for uninterrupted work. The boiler will enable the Segezha mill to receive additional electrical power for production needs, and also to solve the major problem of every industrial giant: waste disposal and reduction of the environmental impact. The total project cost is about RUB 3.5 bln. The MTK is equipped with modern electrostatic precipitators that ensure proper purification of atmospheric emissions with purification efficiency of 99.7%.
    2018
    December 19, 2018
    The new technological line for production of fuel granules (pellets) has been launched in a special ceremony at Lesosibirsky LDK No. 1 Segezha Group. The commissioning of a modern environmentally friendly production comes as a result of the priority investment project of the company in the sphere of forest exploitation - “Development of the full cycle wood processing facility in Lesosibirsk.” The investments into the pellet production facility amounted to RUB 816.6 million. The capacity of the new enterprise is 70,000 tons of ready products, which will be exported. The total amount of investments of Segezha Group into production development in Krasnoyarsk Krai has exceeded RUB 1.7 billion.
    November 28, 2018
    The annual report of Segezha Group in 2017 took the 63rd place among more than 500 companies from 44 sectors of the economy and received a golden medal in the category of companies with capitalization from $100 mln to $1 bln dollars, having received98 points out of 100. The LACP Vision Awards for best annual reports is held every year since 2002 by the League of American Communications Professionals LLC (LACP) among companies representing most sectors of the global economy. The geography of participants in Vision Awards LACP includes more than 20 countries.
    November 26, 2018
    Segezha Group completed implementation of the project to create container terminals at largest woodworking integrated plants of the company. The launch of the terminals equipped with SANY reach stackers will allow to increase efficiency of operations and lower the costs of delivering products to consumers. The company’s investments into creation of container terminals reached RUB 250 million.
    October 30, 2018
    European operations of Segezha Group (part of Sistema JSFC) that produce paper packaging (Segezha Packaging, Arka Merchants Ltd. Holding) achieved the silver level recognition with EcoVadis Business Sustainability platform, which provides Corporate Social Responsibility (CSR) rating service. The company ranked among top 30 of the companies evaluated by Ecovadis. The assessment was based on 21 CSR indicators grouped in 4 themes (Environment, Fair Labor & Human Rights, Ethics and Sustainable Procurement). The evaluation process included expert analysis of the submitted questionnaire and supporting documents showing the evidence of continuous sustainable practices integration into company’s business.   
    October 15, 2018
    October 15, the second production line of the branch Segezha Packaging LLC was launched in the city of Salsk, Rostov Region. The company is a member of the timber holding Segezha Group (JSFC Sistema).The new Triumph 5 QT SK bag making line from the German concern GARANT MASCHINEN will produce single-layer paper bags and bags with twisted handles. Capacity of the high-tech equipment – 25 million pieces of paper packaging per year. The production launch ceremony was opened by Governor of Rostov Region Vasily Golubev, Managing Partner of JSFC Sistema, Chairman of the Board of Directors of Segezha Group Ali Uzdenov and President of Segezha Group Mikhail Shamolin.

    September 27, 2018
    Arka Merchants Ltd., which consolidates the paper packaging production facilities of Segezha Group under the brand of Segezha Packaging, has joined the United Nations Global Compact. 
    Participation in the UN Global Compact confirms the company’s adherence to principles of human rights, labor relations, protection of the environment and anti-corruption activities. This UN initiative in the area of corporate social responsibility and sustainable development on the global scale has brought together businesses that follow responsible business practices and adhere to principles of integrity and fair competitive practices. 

    September 13, 2018
    On September 12, on the sidelines of the Eastern Economic Forum (EEF-2018), Segezha Forest Industry Group of Companies (part of AFK Sistema) and the Government of Sakhalin Region signed a roadmap for development of a joint investment project in Sakhalin, entitled “Construction of Plant to Manufacture Glued Wooden Parts Used in Construction of Prefab Housing.” The investment project presupposes construction of a wood-processing plant that would put out at least 35-40 thousand cubic meters of glued wooden parts a year. 
    August 22, 2018
    For the first time after a ten-year pause, JSC Lesosibirsky LDK No. 1, the key enterprise of the Segezha Group (part of JSFC Sistema) in the Krasnoyarsk Territory, resumes its shipment of finished products by water. The transportation of sawn timber by water is experimental and an alternative way of transporting goods to Egypt. The need for the new logistics chain is triggered by the growing strain on the Lesosibirsk station and the shortage of railcars. If all goes well, it will be able to plan and perform such shipments on a regular basis during the 2019 navigation.
    July 26, 2018
    On July 25 the Investment Committee of the administration of Kostroma region approved the new Plywood Mill Construction Project submitted by Segezha Group (affiliated to Sistema JSFC) with a capacity of about 130,000 cubic meters of large-scale plywood in a year in Galich. Investments to new production make 8.8 billion rubles. It is planned to create more than 600 jobs. An area of 37.5 hectares in Galich will be provided to the investor for the new plant construction.

    July 19, 2018
    Rob Franken, Segezha Packaging Regional Sales Director, was elected President of European Association of Paper Sack Manufacturers (Eurosac). The decision was taken following the results of voting of the organization Executive Board at the annual Eurosac conference, which took place this year in Malta. This appointment once again underlines the recognition of Segezha Group as the leading player in the European market and will positively influence the company’s external image not only in Europe but also abroad.
    July 11, 2018
    July 11, 2018 in Kirov Segezha Group launched a new premium birch plywood production, the second stage of Vyatsky Plywood Mill thus representing the completion of regional priority investment project of the timber holding company Segezha Group (affiliated to Sistema JSFC). The investments into new production amounted to 6.7 billion rubles. Due to modernization the aggregate capacity of Vyatsky Plywood Mill has grown to 192,000 m3 of birch plywood per year including more than 70,000 m3 of a new high-margin product, large-size long-grained plywood. Minister of Industry and Trade of the Russian Federation Denis Manturov, Governor of Kirov Region Igor Vasiliev, Chairman of the Board of Directors of Sistema JSFC Vladimir Yevtushenkov and Segezha Group President Mikhail Shamolin arrived in Kirov for the inauguration of the new facility.

    May 28, 2018
    For the first time in the history of the domestic pulp and paper industry, Segezha Group (Segezha Group, affiliated to Sistema JSFC) produced the first batch of microcreped white packaging paper of 130 tons. The products were manufactured on the ultramodern paper making machine of the global concern Voith, the solemn launch of which was held on November 8 last year.
    May 24, 2018

    During the St. Petersburg International Economic Forum in 2018, Segezha Group (affiliated to Sistema JSFC) and the Government of Sakhalin region signed an Agreement on Cooperation. The main objectives of the cooperation are the wooden house building development in the Far Eastern region and the increase in high redistribution products’ export from the Sakhalin region. The parties agreed to implement on Sakhalin a joint investment project ‘Construction of a plant for the production of glued wooden structures used in the construction of quickly erectable housing.’ The investment project involves the construction of a woodworking plant with a capacity of at least 35-40 thousand cubic meters of glued wooden structures per year.

    May 24, 2018
    During St. Petersburg International Economic Forum - 2018, Segezha Group (affiliated to Sistema JSFC) and the Government of the Republic of Karelia signed a Cooperation Agreement. One of key points of this Agreement is the assistance to the group of companies in providing raw materials for existing and planned production capacities in an economically justified volume of the estimated periodic yield. As an anchor investor of the region the group will continue the implementation of the modernization project for Segezha PPM with increasing capacity to produce sack paper, construction of a new sawmill in Segezha city and restoration and development of production at JSC Karelia DSP site.
    May 5, 2018

    For the first time Segezha Pulp and Paper Mill (affiliated to Segezha Group, Sistema JSFC) produced SKE i4 Premium Ultra-High-Strength Paper as a Pilot Project. Pilot production of paper weighing 90 grams allowed achieving the necessary strength characteristics under the specification within 3 days. The first export consignment will be shipped to Vietnam. Ultra-High-Strength Paper is produced on a new advanced paper machine by the global concern Voith which was solemnly launched in the fall of 2017. This type of paper is a unique in that having the same weight of a square meter as a regular SKE grade without the i4 prefix, its mechanical strength is higher by more than 15%.

    March 29, 2018
    Segezha Group (affiliated to Sistema JSFC) and EUROCEMENT Group Holding concluded a three-year strategic partnership agreement. For the benefit of environmental protection the parties agreed on a new packaging solution for the products of EUROCEMENT Group which from April 2018 switches to the packaging of unbleached sack kraft paper made of eco-friendly natural Russian raw material (100% softwood pulp).The scope of supplies of the renewed Segezha Group bag production of various sizes (25, 40, 50 kg) will meet the needs of EUROCEMENT Group companies in paper packaging in full. 
    March 5, 2018

    Segezha Group (affiliated to Sistema JSFC) – one of the largest Russian vertically integrated timber holding companies – reports that today the Board of Directors of Management Company Segezha Group Limited Liability Company has decided to appoint Shamolin Mikhail Valerievich to position of President, Chairman of the Board of Management Company Segezha Group LLC. Mikhail Shamolin will leave the post of President of Sistema PJSFC, which he held since March 2011, and will enter a new office in Segezha Group on March 13, 2018.

    February 15, 2018

    The results of the first Environmental Responsibility Rating of pulp and paper companies of the Russian forest sector were summed up at the round table “On Measures to Ensure Environmental Safety in Russia”, organized by the Committee of the Chamber of Commerce and Industry of the Russian Federation for Ecology and Use of Natural Resources on February 15. Segezha Group ranked second in the rating, second only to JSC Tetra Pak.

    The rating purpose is to create prerequisites for reducing load on the environment and increasing efficiency of forest resource use, environmental and social responsibility, as well as transparency of the Russian pulp and paper companies.

    February 14, 2018

    Sokol Timber Company  – the flagship of the wooden house construction of Segezha Group (affiliated to Sistema JSFC) in Vologda Region has received the Certificate of the European Environmental Product Declaration. The certificate contains a comprehensive report of independent expertise and recognizes the environmental characteristics of products manufactured by Sokol Timber Company. The constructions using the glued laminated timber, the glued wooden construction and other elements as a base demonstrate many advantages. The material of deep wood processing does not harm either the environment or the person throughout the whole life cycle: from the extraction of forest raw materials to the production of the final certified product, its operation and disposal.

    The document, registered by the Norwegian Program Operator (The Norwegian EPD Foundation) in accordance with ISO 14025, ISO 21930 and EN 15804, was issued to the enterprise for 5 years – until February 2, 2023.
    January 29, 2018

    Segezha Group was awarded the title of “2017 Best Supplier of the Russian Lumber” as the best supplier of coniferous sawn timber from Russia at the annual meeting with stakeholders, held on January 29 in Beijing.

    Xiamen BNBM Group annually evaluates its suppliers on a number of criteria, including the proportion of the supply volume in the portfolio, quality of products and execution of contracts, post-sale services, and potential for strategic cooperation.

    The total volume of sawn lumber imported in 2017, produced by woodworking enterprises of Segezha Group amounted to more than 150,000 cubic meters.
    January 26, 2018
    Within the framework of the 3rd stage of modernization, Segezha PPM updated the forest and wood equipment; it was updated and modernized a new wood chipper No. 1, a slasher-sawing machine, two debarking drums and two flows supply balance system. As a result of modernization, in January 2018 a record was achieved for the production of wood chips of own cutting with 8% increase in the quality of wood chips produced by the stream.
    January 19, 2018

    Segezha Group purchased 8 units of new “forest” motor vehicles for Lesosibirsky LDK No. 1

    In the framework of implementation of the investment program for the renewal of “forest” motor vehicles and auxiliary technological transport to the largest woodworking integrated plant of Krasnoyarsk Region – Lesosibirsky LDK No. 1 JSC purchased additionally 6 tractor-trailers produced by KRAZ and 2 new front end fork loaders produced by Hyundai.

    In 2017, remote logging areas of LLDK No. 1 also received 10 modern logging trucks from IVECO, equipped with trailers and semi-trailers, 5 of them with hydraulic manipulators.

    January 16, 2018

    Vyatsky Plywood Mill LLC has successfully passed a certification audit of the plywood manufacturer’s quality management system for compliance with the requirements of ISO 9001 system, and also made the transition from the version of ISO 9001-2008 standard to the new version of 2015. In 2018, Segezha Group plans transition of Vyatsky Plywood Mill LLC to international standards ISO 14001, OHSAS 18001/ISO 45001.

    January 2018

    In Sokol, Vologda Region, at the Segezha Group enterprises (affiliated to Sistema JSFC) – Sokolsky PPM PJSC and Vologda Paper Mill LLC signed the Collective Agreement.

    The document, which entered into force and effect on January 1, 2018, retained all social guarantees and compensation of the previous Collective Agreement, and additional benefits were accepted as well. In particular, the provision of material assistance to parents with many children of first-graders is enshrined; the fixed amount of the financial assistance for the birth of a child and 100% payment of New Year’s gifts for the employees’ children are provided for therein. All the terms and conditions of the Collective Agreement fully comply with the Labour Code of the Russian Federation and with the requirements for the labour protection.
    2017
    November 9, 2017
    At Segezha PPM (Segezha Group, Sistema JSFC) a collective agreement regulating the relationship between the employer and the workforce was signed. The collective agreement enters into force on January 1, 2018. The parties evaluate the document as mutually responsible. It was possible to agree on almost all issues. According to the representative of the workforce, the interests of employees are protected, social benefits, guarantees and compensations are preserved, and additional guarantees and benefits are accepted.
    November 8, 2017
    Today a unique paper machine is launched at Segezha Pulp and Paper Mill in the Republic of Karelia. The last such project was implemented in our country as early as in USSR times. The total investment for the project is 110 million Euro, 80 million Euro of which is the cost of equipment. As a result of the launch of the machine, the production capacities at the Mill will grow by 30% up to 360 thousand tons of sack paper. 200 new high-tech jobs will be created. Currently, Segezha Group already employs 13,000 people, about 2,000 of which are residents of the Karelian single-industry city of Segezha. Nikolay Patrushev, Secretary of the Security Council of the Russian Federation, Chairman of the State Commission on Preparations for the 100th Anniversary of the Republic of Karelia, Vladimir Yevtushenkov, Chairman of the Board of Directors of Joint Stock Financial Corporation Sistema, Artur Parfenchikov, Head of Karelia, Viktor Evtukhov, State Secretary, Deputy Minister of Industry and Trade of the Russian Federation, Alexander Vorobyov, Federal Inspector in Karelia, and Herbert Gray, Voith (equipment manufacturer) President for projects in Europe, the Middle East and Africa, launched the new production. After the ceremony of machine launching, the best employees of Segezha Pulp and Paper Mill were awarded with honorary prizes and certificates from the Ministry of Industry and Trade of the Russian Federation and the Government of the Republic of Karelia.
    November 3, 2017
    Sokol Timber Company, Russian leader in the production of glued laminated timber and laminated wood constructions, operating in Segezha Group (part of Sistema JSFC) achieved record production figures for the entire history of the plant in October 2017. The volume of output and shipment of laminated wood constructions (LWC) was more than 7 thousand cubic meters. This is the best accounting result for the whole period of the plant’s operation. Over the three years since the plant entered Segezha Group, production volumes have been increased by more than 3 times.
    November 1, 2017
    On November 1, in Beijing, in the framework of the 22nd regular meeting of the heads of governments of the Russian Federation and the People’s Republic of China, President of Segezha Group (part of Sistema JSFC) Kamil Zakirov and President of China CAMC Engineering Co., Ltd. Luo Yan signed an addition to the Agreement on Strategic Cooperation – “roadmap” with the definition of obligations of the parties and the timing of the implementation of project works.
    The general agreement between Segezha Group and CAMCE was signed on July 4, 2017, in Moscow at the meeting of the Russian-Chinese Committee for Friendship, Peace and Development of the Russian-Chinese Business Council in the framework of the program of events dedicated to the official visit to Russia of the President of the People’s Republic of China Xi Jinping. The document regulates contractual arrangements for the joint study of projects of mutual interest in the construction of new facilities for high-level processing of wood raw materials and increase the capacity for the production of cellulose in the territory of the Russian Federation.
    October 26, 2017
    At Segezha PPM, Segezha Group’s basic enterprise (part of Sistema JSFC) in Karelia, the first paper was produced on the roll on the new paper machine No. 11. An international team of experts from Germany, Russia, China, Finland, Brazil, and a number of other countries has done much of what seemed impossible. The timing, during which the most important works are performed, is record. Professionals were able to make the commissioning process so structured and consistent that the time from the beginning of filling to the release of paper takes less than two days.
    October 13, 2017
    On October 9-13 the 25th Joint Session of Committee of the European Commission (UNECE UN) on Forests and Forestry and the European Forestry Commission of the Food and Agriculture Organization of the United Nations (FAO) was held in Warsaw on the 4th Week of European Forests "Las-2017". Historically, the situation in the forestry sector of the UN countries was shown at the exhibition of photographs of the Historical Forestry Photo Exhibition. The basis for the illustrations of the timber industry history of the 12 UN member states on the "Las-2017" was photographic evidence of timber floating, sawmilling and wood-working, as well as the work of lumberjacks and foresters from 1918 up till now. Russia presented album photos in the expositions of 4 pulp-and-paper and woodworking industries of Segezha Group in the Republic of Karelia, the Krasnoyarsk Region, and  Vologda and Arkhangelsk Regions. Segezha Group has become the only domestic company, represented in the anniversary photo album, published for the 70th anniversary of the UNECE\FAO cooperation in the sphere of forestry. Apart from Russia, such countries as Bulgaria, Estonia, Cyprus, Austria, the USA, Latvia, Portugal, Germany, Poland, the Czech Republic and Finland took part in the educational project.
    October 10, 2017
    In accordance with the strategy of the sustainable development of Segezha Group in the sphere of quality, ecology, occupational safety and industrial safety Group enterprises comprising Paper and Packaging Division completed the first stage of certification for compliance with standards ISO 9001, ISO 14001, OHSAS 18001. The certification audits (the first stage) were performed during the period from 26 September till 6 October at the Management Company and at the enterprises of the Paper and Packaging Division – Sokol PPM PJSC, Segezha PPM JSC and Segezha Packaging LLC.
    September 30, 2017
    On 30 September, in the Ice Palace of Kondopoga a tournament on ice hockey was held for prizes of Segezha Group, dedicated to the professional holiday – Day of Forest Workers. In the “forest” competitions on the ice, which are becoming a good tradition, two children's teams took part – the children from Segezha – “Segezha Wolves” and pupils of the newly opened school SKA-Karelia in the Republic, as well as teams of veterans of hockey – the national team of Karelia and the symbolic team of the Forest Complex – Avantgarde. Teams included the representatives of Kondopoga OJSC, Segezha Group, and Karellesprom.
    September 22, 2017
    On September 22, Segezha Group (part of Sistema JSFC) in partnership with FSC Russia held a conference “Ecology and Formation of the Culture of Responsible Consumption in Russia” in Moscow. The event is dedicated to the Year of Ecology in Russia. Segezha Group launched a new format of client meetings – a conference on topical issues of market development involving leading representatives of large business and the state, environmentalists and media representatives. The event discussed the formation of a culture of sustainable consumption and a “green” market in the Russian Federation, environmental responsibility of business, the impact of FSC certification on forest conservation and business benefits for certified companies. The conference participants confirmed the key global trend: the markets are “green”, and a request for environmentally friendly products is being formed in our country.
    September 9-10, 2017
    In Petrozavodsk (Republic of Karelia) the 5th Russian Championships among tree fellers and operators of forest machines “Lumberman-2017” took place. The group of timber companies Segezha Group (part of Sistema JSFC) was the general sponsor of the competitions. Representatives from 26 regions of Russia and Belarus fought for the title of best in the occupation. Segezha Group is a traditional participant of “Lumberman”, it constantly assists in carrying out industry events on the territory of Karelia, supports scientific and social and sports initiatives of the forestry of the region.
    September 12, 2017
    Segezha PPM information technologies management (Segezha Group, Sistema JSFC) jointly with the finished products workshop has developed and implemented a system of automated warehouse accounting. An industrial information collection terminal with a long-distance image-reader is installed in order to optimize warehouse logistics in the finished product workshop. Scanners allow you to program various interfaces for use as mobile accounting work positions. At present, the possibility of loading an erroneous reel into transport has been excluded, the procedure for warehouse inventory has been simplified, and the labour costs for removing data on reels and reducing lists of inventory results have been reduced. Automated system of accounting for finished products allowed refusing the hard-copy paperwork. All operations are performed at the data collection terminal.
    September 5, 2017
    The opening ceremony of the children’s playground “Skazka” took place on the 5th of September in Sokol, Vologda region. The main elements for the multipurpose facilities of the play structure – Bolshaya Gorka (Big slide) and Stage – were made by Sokol Timber Company JSC – the basic enterprise of Segezha Group (part of Sistema JSFC) in the region. The playground has been constructed within the framework of the priority federal project “Formation of a Comfortable Urban Environment”.
    August 18-26, 2017
    On 18-26 August “Solony-2017” Children's Environmental Festival of Sistema Charity Foundation was held in Karelia at the initiative and with the support of Segezha Group. The partners of the event were ‘Detskiy KinoMay’ Charity Foundation, subsidiaries of Sistema JSFC and the Government of the Republic. The festive events took place in 7 Karelian cities – Petrozavodsk, Segezha, Pudozh, Muyezersky, Medvezhyegorsk, Kondopoga and Sortavala. The organizers held a large number of charity events – voluntary Saturday works, transfer of books to libraries and humanitarian loads to social institutions, environmental workshops, puppet shows and others. “Solony-2017” Festival ended with the summing up the results of the engineering and design school ‘Lift to the Future’. This program helps talented youth from the regions of Russia in development of the full potential, and supports technological creativity and scientific research of young inventors.
    August 22, 2017
    On August 22, in Vologda Kamil Zakirov, Segezha Group President and Oleg Kuvshinnikov, the Governor of Vologda Region, signed a Letter of intention of cooperation between Segezha Group (part of Sistema JSFC) and Vologda Region on improving the system of vocational education in the region and staffing the forestry sector 2017-2020. Pursuant to the document, on the basis of the educational institution – Sokol Forestry Polytechnic Technical School – a special department of Segezha Group will be created and a roadmap for joint actions to meet the demand for personnel in Segezha Group employers has been adopted.
    August 21, 2017
    In Saint Petersburg, a contract was signed between Xylotech-Siberia LLC (Segezha Group, part of Sistema JSFC) and SORB LLC (representative of AS Hekotek in Russia) for the supply of equipment for production of wood pellet fuels. The capacity of the new production is 100 thousand tons of finished product per year. The delivery time for the equipment is the first quarter of 2018. The manufacturer is AS Hekotek (Estonia). The cost of the contract is 6.9 million euros. The production place will be located on the territory of the woodworking plant No. 1 in Lesosibirsk, Krasnoyarsk Region.
    August 21, 2017
    Segezha Packaging specialists (Business Unit West of Segezha Group, Sistema JSFC) have developed a new type of packaging product – the so-called “smart” sack with a built-in RFID tag. Special equipment needed to apply RFID tags to the paper sack was installed and put into operation at the German Segezha Packaging plant in Achern (SP Germany). The first production lot of “smart package” was manufactured in September 2017.
    July 26, 2017
    Vyatsky Plywood Mill LLC, a member of Segezha Group (Sistema JSFC), became the second company in Russia that has successfully passed the audit under new requirements of the standard Forest Stewardship Council ® (FSC-C084688) FSC-STD-40-005 V 3-1 “Requirements for Procurement of FSC Controlled Wood”. According to the updated requirements, it is necessary to change fundamentally the work with non-certified producers.
    July 20, 2017
    Within the framework of the International Aviation and Space Salon MAKS-2017, the cooperation agreement was signed between Kronstadt Group and Segezha Group (Sistema JSFC). The companies will create solutions for the forest industry using unmanned aerial vehicles that provide more accurate planning of forest lands, as well as solving settlement problems of any complexity and specificity for the forestry sector, where the latest development of Kronstadt Group will be used - an integrated system for data analyzing and processing. The solution creation and approbation will be carried out on the basis of forest plots owned by Segezha Group.
    July 5-6
    In the Musical Theater of the Republic of Karelia, the opera of the great Italian composer Gaetano Donizetti The Elixir of Love was premiered. The production was carried out with the financial support of Segezha Group (part of Sistema JSFC).
    July 4, 2017
    On July 4, 2017 in Moscow, as part of the program of events dedicated to the official visit of the President of PRC Xi Jinping to Russia, at the meeting of the Russian-Chinese Committee for Friendship, Peace and Development of the Russian-Chinese Business Council the Agreement on Strategic Cooperation between Segezha Group (part of Sistema JSFC) and the Chinese corporation of engineering САМС (САМСЕ) was signed by the President, Chairman of the Board of Segezha Group Kamil Zakirov and President of CAMCE Luo Yan.

    The purpose of the agreement on strategic cooperation is joint implementation of projects in deep processing of wood raw materials and increasing the pulp and paper products’ production capacities in the territory of the Russian Federation. In particular, it is planned to build a new pulp and paper mill on the basis of the industrial site LLDK No. 1 located in Lesosibirsk (Krasnoyarsk Territory), as well as the reconstruction of existing pulp and paper plants of Segezha Group and construction of a new pulp mill in the Republic of Karelia.
    June 2, 2017
    On June 2 during the International Economic Forum – 2017 in St. Petersburg Kamil Zakirov, Segezha Group President, and Ilya Krivogov, General Director of the non-profit partnership Fund for the Development of Single-industry cities, signed an agreement on cooperation. The parties agreed on the development of partnerships aimed at diversifying the economy of single-industry cities, creating new jobs, improving the urban environment quality and attracting additional investments to single-industry cities.
    June 1, 2017
    On June 1 during the International Economic Forum - 2017 in St. Petersburg Kamil Zakirov, Segezha Group President and Chairman of the Board, and Sergei Sitnikov, Governor of Kostroma Region, signed an agreement of intent. The parties agreed on cooperation aimed at implementing an important investment project for the region that of organizing the production of birch plywood. The estimated amount of investment in the project, including the organization of forest use under leases, will be around 8-9 billion rubles. The design capacity of production per year by types of products is about 100,000 cubic m/year. More than 500 new jobs for the residents of the region will be created in the new production.
    May 2017
    Vyatsky Plywood Mill LLC, a member of the Segezha Group (Sistema JSFC), became the second company in Russia that has successfully passed the audit under new requirements of FSC-STD-40-005 V 3-1 Requirements for Procurement of FSC Controlled Wood.
    May 2017
    In the structure of the management company Segezha Group (part of Sistema JSFC) a House-Building division was created. The Group of companies is to form a new player in the market of wooden houses of high quality and service. The tasks of new division in the structure of Segezha Groupare as follows: development of building competencies, including construction of houses on a turnkey basis, development of CLT technology (cross-glued timber) introduction, development of a dealer network and access to new markets for the sale of prefabricated houses.
    April 15, 2017.

    Segezha Group celebrated the 75th anniversary of Sokol Woodworking Plant. This momentous event was marked by 12-millionth linear meter of glued beam. In 2016, the new cutting, slicing and packing line was installed at Sokol WWP, Russia’s first quality control splicing system. Glued wooden houses manufacture has risen by 3.5 times, timber sawing has grown by 24%. The plans include ramp-up of glued wooden houses manufacture through equipment upgrade and stronger sales networking, as well as building up expertise in turnkey houses construction.

    March 2017.

    Music theater of Karelia staged premiere ballet “Swan Lake” by Tchaikovsky. The show was put up with support from Segezha Group (Sistema JFSC). “Swan Lake” – is a hallmark of ballet art. This piece of classic on stage is a milestone for musical theatre of Karelian Republic. The scriptwriter Kirill Simonov – is the honored artist of Karelia, and the holder of “Golden Mask” and “Harlequin” awards.

    February 16, 2017.

    On the resolution of Segezha Group Board of Directors, Kamil Zakirov was appointed CEO and Chairman of the Management Board. Before December 2016, Kamil Zakirov served as the Head of “Targin”, an Oilfield Services Group, incorporated in Sistema JFSC.

    February 2017

    Further to the resolution of the Russian-Chinese Business Council, Segezha Group forest holding (part of Sistema JFSC) has joined the organization and will take part in RCBC’s timber policy.

    Newcomer’s near term plans include export drive of sawn timber and paper to China, partnership in set up and upgrade of ongoing pulp & paper productions in Russia, joint project definition for pulp paper manufacture in China.

    Segezha Group’s admission to the Russian-Chinese Business Council came after the top-tier work group visit in autumn 2016. Supported by RCBC and Russian Consulate General in Shanghai, the holding’s officials undertook a series of high-level meetings with business and investment communities from China, as well as with current and prospective partners of the Group. The talks included early consideration of bilateral plans and proposals, including growth in sawn timber and packaging paper exports from Russia to China, expanding the purchase volume of Segezha Group’s merchandise by Chinese companies, transport logistics, project formatting for sack co-production, negotiations for raising investments to Segezha Group’s Russian-wide projects supported by Chinese investment funds.

    Driven by export cutback on low margin markets, we shifted delivery volumes of sawn timber and paper southeastward, predominantly to the market of China. Sawn timber sales from Lesosibirsk Sawmill №1 have seen a considerable pickup and reached 31% from total exports. If in 2015, LSM №1 dispatched circa. 85 000 m3 to Chinese customers, in 2016 the volumes amounted to 140 000 m3.

    January 2017.

    The Russian sack production sites of Segezha Group (part of Sistema JFSC) boosted FP production by 27% at year-end 2016. “Segezha packaging” LLC in the Republic of Karelia (Segezha) and in Rostov Region (Salsk) have shown high production performance. In 2016, “Segezha Packaging” LLC for the first time since the company’s foundation overstepped its record - 500 mln. sacks p.a. Segezha Group’s total annual output including Russia and overseas is over 1,3 bln. of paper sacks.

    2016
    December 16, 2016.

    The Woodworking division’s production plants of Segezha Group (part of Sistema JFSC) completed the annual plan in timber sawing ahead of schedule. Timber sawing record target of 2 211 000 m3 was yielded by joint efforts of four enterprises: Lesosibirsk Sawmill №1 (Krasnoyarsk Area), Onega Sawmills (Arkhangelsk Region), Sokol Woodworking Plant (Vologda Region), and Segezha Sawmills (Republic of Karelia).

    November 10, 2016.

    Segezha Group joined the European Association of Sack Kraft Paper Manufacturers CEPI Eurokraft, thus having joined 10 member-companies from Sweden, Poland, Austria, Spain, Croatia, Estonia, and France.

    November 2016.

    The Aalborg sack production plant (Denmark) confirmed its FSSC (Food Safety System Certification) compliance following audit performed by the chartered institution of surveyors DNV GL. Segezha Packaging Denmark became the first production asset within the Group to have obtained this certificate.

    September 18, 2016.

    Ice rink of the sporting arena “Lumi” in Petrozavodsk hosted the first Republican (Republic of Karelia) ice hockey tournament for Segezha Group Cup, dedicated to the “Workers Day” professional holiday. Competition among amateur teams aged ”40+” sponsored by “Sistema” Charity Fund was held by Segezha Group and the Karelian Ice Hockey Federation to promote and popularize hockey and physical training activities among local population.

    July 7, 2016.

    Segezha Packaging Ltd. (part of Segezha Group) launched the new paper bag-making machine by Windmoeller & Holscher (Germany) a month earlier than planned. Consequently, the enterprise's consumer paper packaging production capacities have doubled: Segezha Packaging can now produce up to 50 million individual products per year. The new automated Triumph 5QT SM Servo machine was added to an identical machine that had been launched at the enterprise since 2005. The line's universal equipment allows it to produce a wide range of consumer packaging — paper sacks, carrier and block bottom sacks, and is designed to work 24 hours a day. The machine's production capacity is around 24 million packaging units a year.

    June 18, 2016.

    During the St. Petersburg International Economic Forum – 2016 Sergey Pomelov, CEO of Segezha Group and Vladimir Evtushenkov - Chairman of the Board of Sistema JSFC accompanied by the Governor of Vologda Oblast Oleg Kuvshinnikov, had meaningful discussions concerning prospects for setting up the largest house construction enterprise in Russia based in Sokol. One more ambitious project in the pipeline – is construction of the new plywood mill.

    June 18, 2016.

    During the St. Petersburg International Economic Forum – 2016 Sergey Pomelov, CEO and Chairman of the Management Board of Segezha Group (part of Sistema JSFC) and Vasily Golubev, the Governor of Rostov Oblast, have signed a Memorandum of cooperation between the regional government and Segezha Group. Segezha Packaging Ltd.'s project in Salsk is included on the list of "The Governor's 100 investment projects" which have social and economic importance for the region's development.

    June 17, 2016.

    During the St. Petersburg International Economic Forum – 2016, Segezha Group signed an agreement of cooperation with the Kirov regional government and Karelian Republic. The ceremony was attended by Vladimir Yevtushenkov, Sistema JFSC's Chairman of the Management Board.

    April 2016.

    Contracting machinery supplies as part of the second stage of harvesting and logging fleet upgrade. Investment project suggests acquisition of 162 units of equipment, including 12 logging complexes, 20 imported logging trucks and over 50 units of auxiliary equipment. Invested funds amount to RUB 2.7 bln. Machinery and gears upgrade present the key stage of the Group’s overall investment program.

    June 2016.

    The joint initiative by Segezha Group and WWF Russia in creating an Environmental responsibility rating for the companies in the forest industry of Russian Federation was presented.

    June 2016.

    Public hearings of the first Report on Segezha Group's sustained development in 2014–2015 at RUIE (Russian Union of Industrialists and Entrepreneurs) venue was held. This is the first ever document in the Russian forest industry, complying with international GRI G4 reporting standard that breaks new ground for nonfinancial reporting of the Russian timber companies.

    March 10, 2016.

    Launch of converting mill in Salsk (Rostov Region) running at 90 mln sacks per year. The project delivery increased Segezha Group’s share on the national paper packaging market up to 60%. Installation of the new production line is slated for September 2016; the third line will be rigged up in 2017. Startup investments amounted to RUB 1.5 bln. The new mill will provide stable supplies of quality packaging most regions of the Southern Federal District. Total investments of Segezha Group into the project will amount to RUB 3 bln.

    February 2016.

    Acquisition of Lesosibirsk Sawmill №1 (Lesosibirsk, Krasnoyarsk Krai). With new asset acquisition, Segezha Group expands its footprint in Russia and geographical scope of its business operation. By increasing sawn timber conversion rate more than twofold, the Group becomes one of the leaders in the segment of timber production and sales in Russia. Ramp-up of sawn timber production up to 900 000 cubic meters p.a. among other benefits gained for Segezha Group product diversification through utilization of new marketable wood species — larch and Angara pine.

    February 6, 2016.

    Adoption of the new revised growth strategy of Segezha Group at the session of the Management Board of Sistema JFSC.

    2015
    December 10, 2015.

    Launch of the new veneer converting line at «Vyatsky Plywood Mill” LLC. The new line HASHIMOTO DENKI Co. Ltd. (Japan) brought about feed cost reduction at the Mill thus cutting overhead.

    September to November 2015.

    Contracting supply of the core process equipment as part of “Segezha PPM Upgrade” project. Total investments for the project stand at RUB 13.9 bln. This is the first Russian-wide project over the past 25 years suggesting setup of the new paper-making machine.

    August 28, 2015.

    Launch of the new automated paper-sack line for dry mixtures and cement, running at 90 mln. pcs. per year in the city of Segezha (“Segezha Packaging” Ltd). New high-tech sacks production yield has grown by nearly one third to reach 537 mln. pcs.

    August 2015.

    Segezha Group’s entering the Top-50 list of Russian timber companies at year-end 2014.

    July 16, 2015.

    Putting in operation the Russian first ever 8-colour printing machine in Segezha city (“Segezha packaging” ltd). The new Italian CRYSTAL 808 120 provides printing for all small orders with enhanced high-resolution colors; these sacks are mainly for dry building mixtures and consumer packaging.

    May 2015.

    The Group is renamed Segezha Group.

    The rebranding process begins.

    February 7, 2015.

    Shareholder Sistema JSFC approves the Group’s development strategy. Chairman of the Board Vladimir Evtushenkov sets the management goal of becoming the industry leader.

    2014
    September 29, 2014.

    "LesInvest" LLC, part of Sistema JSFC, concludes the purchase of a 100% share in Segezha Pulp and Paper Mill JSC and acquires a 100% share in "Derevoobrabotka-Proekt" LLC.

    April 4, 2014.

    Sistema JSFC, the largest diversified public holding company in Russia and the CIS, announces that it has signed a legally binding agreement: "LesInvest" LLC is to acquire a 100% share in "Segezha Pulp and Paper Mill" JSC, and a 100% share in "Derevoobrabotka-Proekt" LLC, by the end of September 2014.

    December 17, 2014.

    President of "LesInvest" LLC, Sergey Pomelov, presents the investment projects for the Group's assets development.

    The group follows a large-scale growth strategy for logging, raw wood processing and the manufacture of high added value products in all four Russian regions where it operates, as well as in its European factories.

    The modernisation of our existing production facilities and the construction of new ones will allow us to increase our production of craft paper by 40%, whilst tripling our birch plywood production and doubling our paper packaging production. We also plan to intensify our production of wooden houses and glued wooden structures.

    The group is actively expanding its sales to include both the traditional European market and new markets. Our strategic plan recognises MENA (the Middle East and North Africa) as a priority region, as well as markets in China, Southeast Asia and Latin America.

    In order to implement these ambitious strategic plans successfully, the Group is consolidating its forest assets and increasing its logging volumes in all regions. Raw material is the foundation of sustainable business development, and the Group’s first investments focus on acquiring the most modern logging and hauling equipment.


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