STG owns one of the largest tissue factories in Russia, which produces mainly base paper, toilet tissue, paper towels, and napkins. In terms of production volume, STG held 8% of the local toilet paper market (third place) and 26% of the local base paper market (first place) in 2010. The company launched paper napkins and towels production in 2008 and reached 2% of the Russian market in 2010. STG produces tissue from various raw materials (pulp and wastepaper) and targets diverse residential groups of both cost-effective and premium segments. STG's base paper is also supplied to foreign producers, including SCA and Metsa Tissue.
STG plans to direct proceedings from the IPO to a EUR 60 million (to 2015) investment program aimed at upgrading existing capacities and acquiring new facilities both in Syktyvkar and the Central region. As a result of the investment program, STG foresees an increase in sales from RUB 1.8 billion in 2010 to RUB 4.5 billion in 2015, and a net profit increase from RUB 93 million to RUB 500 million.
STG began production in 1972 as a tissue division at Syktyvkar Timber Processing Complex, Russia's largest forestry factory at that time. The company's mills have modern tissue lines supplied by Metso, Fabio Perini, and SDF, with a combined capacity exceeding 50,000 metric tpy of base paper and 275 million standard rolls, or 14 million standard packs.
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