NEWS

29/03

KEF-2019 Segezha Group and Governor of Krasnoyarsk Krai Sign Cooperation Agreement

On March 29, as part of the business program of the Krasnoyarsk Economic Forum (KEF’2019, March 28-30, 2019), a cooperation Agreement\ was signed between the Governor of Krasnoyarsk Krai and Segezha Group Management Company LLC, (part of Segezha Group, Sistema JSFC). The document was Governor Alexander Uss of Krasnoyarsk Krai, and Mikhail Shamlin, President and Chairman of the Board of Segezha Group Management Company LLC.
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.
“I would like to note that Segezha Group is a very reliable partner that has been working in Krasnoyarsk Krai for a short while only, but nevertheless has earned an excellent reputation already,” Governor Alexander Uss of Krasnoyarsk Krai said at the signing ceremony. “Its main wood-processing enterprise is located in Lesosibirsk, the forest capital of the Krai. This is one of the largest and most hi-tech enterprises not only in this country but on the global scale, too. We all know that one of the bottlenecks in the Russian forest industry is lack of modern dendrochemistry facilities, and it is our agreement that will define the actions we will need to take together to implement such a project. If this project is implemented in the next several years, with the record amounts of investments it will open a new future for the Krai and the company.” 
In his response Mikhail Shamolin, President of Segezha Group illustrated the high operating results of Lesosibirsky LDK No. 1 (part of the Company), and talked about the project of the new enterprise, highlighting its considerable differences from the similar enterprises built in the past, including its environmental safety, energy efficiency and waste-free production.
“This biotechnological complex is the first in Russia paper-and-pulp production for the past forty years that will produce bleached sulphate pulp.  It is environmentally flawless and quite high-tech with the output capacity of up to 1 million tons of export products per year,” head of the investor company said. “I am confident that the enterprise in Lesosibirsk will be more efficient than all alternative global suppliers of pulp are in terms of costs. This will signify a new step in development of the global pulp and paper industry. The enterprises in Europe have already completed this step, and we think that we should have such an enterprise in this country as well.” 
The concept of the project is based on using 100% wood raw materials, including provision of electricity and heating for the enterprise. In 2019-20 the design documents of the BTC will pass the state and ecological expert reviews, the construction phase will take place in 2021-23, and after that the BTC project will be commissioned into operation at full capacity. The investments into the new biotechnological complex will amount to USD 1.5 billion. A total of 460 new jobs will be created. 
After the new enterprise is launched in Yeniseysky District, Krasnoyarsk Krai and Russia overall will be able to take up the leading position in the world, ahead of global players on the market of pulp and paper products. This, he said, is largely due to availability of high-quality forest raw materials, logged here at competitive prices, good transport accessibility, availability of qualified human resources and the proximity of major global sales markets. Additionally, Russia has formed the necessary normative base and determined the sources for support of such large-scale investments as part of the International Cooperation and Export National Project.
“We believe the region has a lost of potential, and we will be working on increasing our production capacities here in the interests of the state, the Russian forest industry and residents of the Krai,” Mikhail Shamolin said in conclusion. “The active support that the Governor provides us is quite important for us strategically.”
A cooperation agreement between the Governor of Krasnoyarsk Krai and Segezha Group Management Company LLC entered into effect on the say of signing and shall be valid through December 31, 2021. Subsequently, the parties will have an option to extend its term. 
The ceremony was also attended by: Yuri Lapshin, Chairman of the Government of Krasnoyarsk Krai, Vladimir Vinogradov, Vice President for Segezha Group, Nikolai Ivanov, Head of Segezha Group’s Directorate for Government Relations, and Milena Simonova, Managing Director for Public Relations.