Arkhbum Tissue Is Eyeing to Gain up to a 15 Percent Share of the Russian Tissue Market

An affiliated company of Arkhangelsk PPM, JSC – Arkhbum Tissue Group, JSC -- is planning to hold up to 15 percent of the tissue market in Russia. This was announced by a member of the board of directors, Vladimir Krupchak.

According to his Krupchak, the pulp mill holding company has a number of competitive advantages. Among them: a vertical integration within the group of companies, which minimizes risks related to raw materials.

Factors for successful entry to the market include, according to Krupchak, a company-owned rail car fleet and motor vehicle fleet which will allow Arkhbum Tissue to minimize logistic expenses, the unique location of the mill by the side of Moscow ring road, with access to the Central Federal District in general, a major center of consumption. Logistics are good as one of the most modern hubs in Russia – Kaluga Freight Village – is located two kilometers away. There is also a skilled labor force working at within the company.

"Now the capacity of the first order of our factory in Vorsino is 700,000 tons/yr of tissue paper with the prospect of growth up to 200,000 tons/yr. This will partially satisfy the demand of tissue products in Russia," notes Krupchak.

At the moment, the consumption of tissue products in Russia is about 3.5 kg/ person/yr. In Europe it is 12-15 kg/person/yr, in Eastern Europe, 8-10 kg. According to the data of APPM marketing department, during 2018 country consumption of tissue paper should increase by up to 500,000 tons by the end of the year. It will grow on an average by 4-6 perecent up to the level of 800,000 tons/yr and higher by 2030.