A direct dialog between the President of Segezha Group Mikhail Shamolin and the team of LLDK No. 1 took place in Lesosibirsk

On September 20 the President and Chairman of the Board of the Segezha Group of Companies Mikhail Shamolin met the workers of Lesosibirsky LDK No. 1, the largest asset of the company in Siberia. The meeting took place in the town of Lesosibirsk. The meeting between the Head of the Group and the employees was also attended by Rovshan Aliyev, Vice President for Finance and Investments, Yulia Skaletskaya, Vice President for HR Management, Roman Selyutin, Financial Director of the Forest Resources Division, and Artyom Siluyanov, Executive Director of JSC Lesosibirsky LDK No. 1. More than 500 employees came to the meeting held in the enterprise’s Community Center.
The President of the Company told the employees about the company’s strategy for asset development, and a number of investment projects that the managing company has been implementing or planning for implementation.
“First and foremost, it is the reconstruction of the Segezha PPM, the main source of profits for the Group as of today, with plans to increase the volume of pulp production by several times. This will be the largest pulp mill in the country in terms of pulp production volumes, Mikhail Shamolin said. We are also starting the construction of a new plywood combine in the town of Galich in Kostroma Region and the plant for production of laminated wood structures in Karelia, which will double our capacity in LWS, laminated beams and glulams. A new paper-making machine has been planned for installation at Sokolsky PPM in Vologda Region. This will help bring the volume of paper production by 80,000 tons as compared to current indicators. We are also building a CLT panel plant at Sokolsky DOK, which will be launched in the middle of next year.” This technology will allow to build multi-storey buildings out of wood, Mikhail Shamolin said. The company has been working on designing two such buildings in Moscow and will seek to capture a share of the multi-storey wooden buildings. The President also added that the company was working on increasing output of paper sack conversion capacities and acquire new machines and technologies.
Another issue covered at the meeting was the construction of a modern biotechnological complex in Lesosibirsk with the output capacity of 1 million tons of pulp. The future plant’s concept presupposes using 100% of wooden raw materials. Bark, sawdust and other lumbering byproducts will be used to produce electricity. The top priority of the new project is its eco-friendliness. The process of consuming chemicals here will be made maximally cyclical, and the new facility will generate no air pollution. Technical innovations will include lower emissions due to elimination of coal boiler houses. Since molecular chlorine will not be used, the bleached pulp production facility will be odorless.
The staff asked the President questions regarding the future of the enterprise. One question was about whether deploying the automated production unit would lead to layoffs. The President of the company told those assembled that there were no plans for layoffs. Moreover, plans are to increase production and the list of products, and salaries are expected to grow.
“The BTC is a complex and expensive project that will require some USD 2 billion of investments,” Mikhail Shamolin said. “A total of 5,000 construction workers will work there at any one time; it will be not only a pulp mill but also an electric station. The soda recovery boilers burning wood waste will generate a total of 180 MGW of electrical power for the combine and the city. This construction project is huge, and we will need all our human resources.” The head of the company said also that pellet production was due to be increased as well, and a new glulam plant was planned to be constructed at LLDK No. 1. Its products will be exported. Larch processing and production capacities will also be developed, and that will keep people busy. “There will be no layoffs,” the head of the company told the audience. He also said that the new BTC will not be built without the support of local residents. “Without this nothing will happen, no one will go against the opinion of the people. It is the support of Lesosibirsk residents that we seek,” Mikhail Shamolin said.
Someone in the audience asked about the logistics of delivering raw materials for the future BTC. President Shamolin said that the new complex was being designed by a reputable Swedish company, which previously designed a pulp mill in Eenekoski (Finland), with the output capacity of 1.3 million tons.
“We’ve looked at that plant, it looks like a spaceship. The company is reliable, it will do a great job,” the President said. “Now when it comes to logistics, the answer is not simple. Obviously the LLDK site will not be large enough for the raw materials needed to produce 1 million tons of product. This will amount to 5 million cubic meters of raw materials a year, in addition to the raw materials being brought for lumbering. There are several ways to achieve security of raw materials supply, Mikhail Shamolin said. The first is to create an additional site where forest raw materials will be stored, construct a flyover bypass to make roads more accessible for timber trucks, as well as expand port facilities significantly to step up transportation by water and increase wood floating capabilities.
“The main thing is that we are supported by federal and regional authorities in our plans to build a bridge across the Yenisey. This will allow us to deliver raw materials all year round, and we will no longer need such large warehouses. This will simplify the logistics considerably,” Mr. Shamolin said. “We have also held productive negotiations with the RZD, and we have reached understanding on expansion of the railway hub in Lesosibirsk. Two more trains will be added to the daily schedule.”
The President also responded to the question about salary increase.
“We will treat all the requests of our staff very attentively; there will be an increase in salaries, but not before we increase profitability and cost efficiency,” Mikhail Shamolin said. “We have growth potential. We will need to work on increasing the efficiency of logging, cutting costs and decreasing logging expenses to match those of the best logging companies in Russia. We will need to find more optimal solutions for loading containers onto innovative open freight cars. We also have plans to purchase new drying cabinets, reinforce the sorting line and the transport park; we are ready to invest in this.”
At the conclusion of the dialog, Lesosibirsk employees watched video messages from their colleagues in other regions, congratulating them on the Day of Forest Workers and Forest Processing Industry. Mayor of the city, Andrey Khokhryakov also congratulated the workers of the Combine. He said that he was confident that Segezha Group was to stay in Lesosibirsk for a long time and that the presence of this employer in the city guarantees the level of comfort. Logging has been done in Lesosibirsk, the forest capital of Krasnoyarsk Krai, for a century.
Those assembled were also greeted by Vladimir Soldatov, Director of Krasnoyarsk Forest Protection Center. Mr. Soldatov noted the great importance of certification of the plant according to international standards and the large amount of work being done in the area of reforestation.
Artyom Siluyanov, Executive Director of LLDK No. 1 talked about the decision of the managing company to acquire RUB 200 million worth of additional wood cutting and auxiliary equipment for the enterprise. The equipment will be purchased before December of this year.
“It is important for us to guarantee stable development of the enterprise, which will make it worthy of investing into. Many projects have already been implementing, and some good prospects are ahead. We are one team, and the results of this work will help us get worthy salaries and be proud of what we do,” the director told the team.
In conclusion of the meeting the best employees received corporate awards. Commendation letters from the President of the Segezha Group were awarded to 14 specialists; 11 employees were awarded 5-Year Service Badges. The competition for the Best Employee was held at the combine during the year, and the winners were announced at the meeting with the President. Five people received “Best Manager” awards, 5 won in the “Support and Authority” nomination; 6 – “Best Professionals” nomination, and 4 young employees received their awards in the “Best Prospects” nomination.