Segezha Group, one of the largest wood and paper holdings in Russia and Europe, will invest RUB 11 billion (US$149 million) in the modernization of its domestic plant in the Sokol area of the Vologda region, according to recent statements, made by the company.
As part of the project, the capacities of the enterprise will grow by 4 times from 20,000 to 80,000 tons per year. For this purpose, a new paper machine (PM) No. 11 will be built, that will specialize in the production of unbleached grease-resistant paper, which has no analogues in Russia.
The new production is expected to be launched by 2023 will be one of the largest of such kind in Russia.
So far, its support to the project has been expressed by the Governor of the Vologda Region Oleg Kuvshinnikov.
The new PM will allow to completely utilize the existing pulping capacities of the company. At the same time, it is planned to increase the production of dry lignosulfonates, a by-product, which is obtained from waste during pulping.
The modernization will allow to significantly strengthen the position of Segezha Group in the market for unbleached grease-resistant paper. In the future, the Group will begin to produce packaging with high barrier properties from Sokolsk grease-resistant paper at its enterprises.
Robust demand + shortfall of supply = Increase in prices