NEWS

05/04

President of Segezha Group introduced the investment project for further modernization of Segezha PPM at the meeting with the State Commission on Preparing for Celebrations of the Centennial of the Republic of Karelia

On April 5 in Moscow at the meeting of the State Commission on Preparing for Celebrations of the Centennial of the Republic of Karelia, Mikhail Shamolin, President of the Segezha Group, talked about the results of the first stage of modernization of the Segezha Pulp-and-Paper Mill and presented an investment project to increase the capacity of that Karelian flagship of the pulp and paper industry.
The event was chaired by Nikolay Patrushev, Chairman of the Security Council of the Russian Federation and head of the State Commission on Preparing for Celebrations of the Centennial of the Republic of Karelia, and attended by heads of federal ministries and departments, as well as executive authorities of the Republic. The participants discussed the issues of socio-economic development of Karelia and implementation of socially significant investment projects in the Republic, as well as measures to improve the quality and accessibility of services in the field of education, culture, tourism and sports in Karelia.
Mikhail Shamolin, President of the Segezha Group, reported to the State Commission on the results of the renovation project at the city-forming enterprise for Segezha District, completed in 2015–2018. The output of unbleached craft paper as a result of the renovation project has grown from 268,000 to 360,000 tons per year. In just a few years the fiber line of the pulp mill – the digester – was replaced, a cutting-edge paper-making machine with the output capacity of 110,000 tons of sack paper a year was installed, as was a new multifuel bio-fueled boiler to produce steam necessary for the factory’s technological processes. A new stage of the modernization process began in 2019. 
“Our strategic goal is to reach the figure of 1 million tons of finished products per year, including bleached softwood and hardwood pulp, and bleached and unbleached sack paper. We also expect to transition to a fully autonomous energy supply model,” Mikhail Shamolin said. Total investments into the project will amount to RUB 55 billion, Mr. Shamolin said. Export revenues are expected to reach RUB 187 billion by 2024. 
In his speech at the session of the State Commission the President of the forest industry company said that comprehensive renovation of Segezha PPM will provide considerable effects to the region. In particular, tax revenues into the budgets of all levels will increase by approximately RUB 5 billion a year. A total of 1200 hi-tech workplaces will be created, and the current employees will be re-qualified in a comprehensive training program; a total of 3000 jobs will be created for the duration of the project (construction and assembly of equipment). Additionally, use of 100% of wood raw materials will make the production virtually waste-free, fully independent of outside energy deliveries and help implement a large-scale forest restoration project on the part of the company. The region will get additional stimuli for development of construction, transport, service and other accompanying businesses. 
The speaker said that in order to achieve the goals in the interests of the business and the region, forest industry professionals would need 3 million cubic meters of allowable cut, and have the normative database amended in the part pertaining to intensive use of forest resources. Additionally, Segezha Group is expecting the costs for building the road infrastructure to be subsidized, including construction of approaches, the detour road in the town of Segezha as well as a number of forest roads.
According to the estimates made by the Office of Strategy and Business Development of Segezha Group, after the modernization project is completed, the renovated Segezha Pulp-and-Paper Mill will not need any additional changes for at least 50 years of continued operation. 
The State Commission on Preparing for Celebrations of the Centennial of the Republic of Karelia was founded by the order of the President of the Russian Federation No. 517 dd. 24.05.2013 (the event will be celebrated in 2020). The State Commission is working on creating conditions for advancing social and economic development of the Republic of Karelia, in order to improve the level and quality of life of the population. Tasks on this path include creating a favorable investment climate and developing public-private partnerships.