Russia’s Arkhangelsk to Invest EUR 20 Million in New Tissue Capacity

The Arkhangelsk Pulp and Paper Mill (APPM), Russia, will make a large investment (EUR 120 million) in Vorsino, in the Kaluga region of Russia, and is soliciting government aid for domestic tissue industry players. APPM says that by 2030, Russian demand for tissue paper will exceed 1.4 million metric tpy, with domestic capacity expected to grow to 990,00 metric tpy, leaving  a 340,000 metric tpy gap, according to a report by RISI.

Arkhangelsk is currently investing in two tissue machines with a combined capacity of 140,000 metric tpy. 

The two machines will be installed during 2018-2021. The company is considering options to increase that capacity to 210,000 metric tpy, according to APPM’s Government Relations Manager Natalya Pinyaguina. Pinyaguina noted that the Ministry of Trade has initiated a working group, of which APPM is a part, aimed at laying out state aid measures to help grow domestic tissue production.

Pinyaguina said that APPM has put forward several key initiatives, including guaranteed government orders for domestic tissue products, subsidies to cover interest payments on loans and tax relief tools, as well as state guarantees for the provision of bank loans.

The APPM Vorsino Mill, which will use virgin fiber as the main raw material in tissue production, 

In addition to the two new tissue machines, the mill will erect several new toilet tissue and napkin converting lines. Alongside the PMs, the facility will house several converting lines for production of toilet paper and tissue and napkin products. The project will cost some EUR 120 million.

Initially, the mill will make tissue products aimed at the Away from Home tissuemarkets, but late will add capacity to supply At Home markets as well.