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Korsnas Packaging aquires majority shareholding in Sacchificio Toldera S.p.A.

07.07.2006 Press release

After many years of positive cooperation, Korsnas Packaging AB, which is owned by Segezha PPM, has acquired a majority shareholding in Sacchificio Tordera S.p.A. This decision strengthens the long-term partnership between the companies to face future market challenges.
Sacchificio Tordera S.p.A., which was established over 60 years ago in Varese, Italy, is a well known company in the paper sack industry. Sacks produced by Tordera are delivered throughout Europe and to many of the leading producers of building material products.
The direct involvement of the founding family will be maintained through Michele Graglia, who will continue as CEO of the Company and as a key share holder. In addition Michele Graglia has been appointed as Business Development Director of Korsnas Packaging, reporting to the CEO, and as a member of the Executive Committee of the company.
Following on the recent take over of Korsnas Packaging by Segezha PPM, the acquisition of a majority shareholding in Tordera is a further step in the companies strategy to develop a leading global position in the paper sack industry.

Upon purchasing Korsnas Packaging company, Segezha Pulp and Paper Mill becomes a new No.2 player in the global paper sack market

15.12.2005 Press release

Korsnas Packaging - Segezha Pulp and Paper 
            Mill Investment AB Kinnevik has officially announced that it has entered into an agreement to sell its subsidiary Korsnas Packaging to the Russian company Segezhsky Pulp and Paper Mill, Inc. The agreement is signed on December, 15th in Stockholm (Sweden). The sum of transaction makes ˆ73,5 million. The transaction is subject to approval by competition authorities and is expected to be finalised in the first half of 2006.
In the press release distributed by Investment AB Kinnevik( www.kinnevik.se ) particular it is emphasized:
Korsnas Packaging is Europe's second largest manufacturer of industrial paper sacks. It produces about 850 million paper sacks annually in high-quality production facilities in nine countries. In recent years Korsnas Packaging has improved its profitability despite difficult market conditions in Western Europe and successfully capitalised on the significant growth in Eastern Europe.
Segezha Pulp and Paper Mill, Inc., (Karelia, Russia) is an integrated pulp, paper and packing business. It is Russia's largest producer of sack paper and industrial paper sacks, with significant export of sack and kraft paper. The combination of Segezha Pulp and Paper Mill's paper production capabilities with Korsnas Packaging's pan-European market coverage provides an excellent industrial fit between the two companies.
The transaction creates a new No. 2 player in the global paper sack market, with an annual production of some 1.1 billion industrial paper sacks, combined with a sack paper capacity of about 300,000 tonnes. It also strengthens Segezha Pulp and Paper Mill, Inc., and Korsnas Packaging's already strong position in the fast growing Eastern European, CIS and Russian markets and enables a more efficient utilisation of the production units.
Comments of Segezha Pulp and Paper Mill, Inc., Director General Vasily Preminin: Korsnas Packaging bay Segezha Pulp and Paper 
            Mill
- Purchasing of Korsnas Packaging company is a logic continuation of strategic plans of Segezha Pulp and Paper Mill, Inc., regarding strengthening and expanding its presence in the world market.
The only way the enterprise can develop is through increasing volumes of manufacture of high-quality production, in our case it is sacks made of kraft paper. This sector of pulp and paper industry is very hard: in the world it is consumed about 40 billion sacks a year, half of it is paper packing. The new "know-how" have allowed to reduce the quantity of layers of paper sacks - due to changing the paper properties. Thus, consumption of kraft paper in the world will be reduced inevitably.
Segezha Pulp and Paper Mill, Inc., can't take the liberty to reduce production volumes, as it is an economic deadlock. Modernization of the equipment accomplished at the enterprize on the entire cycle strategically results in doubling of paper manufacture against the present level - up to 600 thousand tons a year. We have to make sacks of all paper we produce, to make more sacks - not a few percents, but a few times more, up to two billions pieces a year! Although, it is a few times more than domestic industry needs, where we have already received the lion's share of the market: four of five sacks consumed in the cement industry are from Segezha.
There is only one way out - to expand our presence in the European and Asian markets. No one will let us there as a favour for no particular reason and former successes. In Europe the market of paper sacks very strict, and a number of companies in safe countries even allow production at a loss - provided that they do not lose consumers. In a word, the Russian manufacturer will not be let in the world market for no particular reason.
About this, and also that Segezha Pulp and Paper Mill, Inc., would have to purchase companies manufacturing sacks in Europe, I spoke in the end of November in Veinna in my report at the anniversary conference of Adam Smith's Institute. I'm quite satisfied to tell, that strategic plans of Segezha were understood and approved by both colleagues in the pulp-and-paper branch, and representatives of the largest financial and investment structures. Now the plan became a reality.
Korsnas Packaging is one of divisions of the largest Swedish concern Korsnas AB that has a 150-year history, in the list of world manufacturers of paper packing it is on the honourable second place. It manufactures about 850 million sacks a year, and has a number of exclusive products. The company has enterprises in Spain, Germany, Italy, Holland, Denmark, Czechia, Romania, Serbia and Ukraine, and also it has marketing structures in several countries of the world.
A few months will pass from the moment of signing the agreement to real assumption of management of the enterprises. Much should be done and reconceived anew. Perhaps, it is a new stage and an important precedent in the history of both Segezha Pulp and Paper Mill, Inc., and domestic industry.

300 million sacks have been produced since the beginning of 2005!

12.12.2005 Press release

On December 9, 2005 Segezha PPM (Converting plant) produced the 300 millionth paper sack in 2005. It is planned to make 10 mln sacks more up to the end of this year. It is 20% more than in 2004 (254 mln sacks) and two times more than in 1998 (141 mln pcs). In 1998 the mill developed and launched a new strategy with the following main goals: customer orientation, long-term investments attraction, facilities modernization, the new mill’s structure forming. Since 2002 the converting plant has been equipped with new machines: two sack production lines were put into operation in 2002 and 2004, a modern flexographic printing press was started-up in 2004. Guarantee test of a new shopping bag making machine is coming to its end now (start-up in December 2005), a new paper sack production line is being mounted at present as well (start-up in the first quarter of 2006). At the same time the mill developed the product movement and customer relationship logistics. Marketing experts could competently enter into long-term relations with the buyers and smooth over the seasonality influence on production and deliveries. In 2006 it is planned, for example, to produce 340 mln sacks, where in January – 20 mln pcs and in a “peak”July - approx.40 mln pcs. After the paper machine modernization the quality of Segezha paper conforms to all international requirements, therefore now foreign paper can be substituted to domestic one. It is more evident in the market of paper sacks for dry mix, here they demand sacks with complicated design and good quality print. In 2004 Segezha PPM hold 16% share of this market in Russia, this year – about 25 %, and next year it is going to reach 33-35%.

SRB - 4 is under operation again.

05.12.2005 Press release

On 5th December at Segezha PPM after complete overhaul SRB-4 was commissioned. This reconstructed boiler allows to increase pulp output 1,5 times more and stabilize the whole production chain. It influences positively on environment and reduces production costs.
For the complete overhaul SRB-4 was shut down in April 2003. By this time physical and moral depreciation of the unit had approached to a crucial point. SRB-4, commissioned in 1970 practically worked out its life time and therefore its performance for the recent years didn’t give any guaranties for the required stability. New strategy of development and reconstruction of SRB-4 requires considerable production growth.
Active period of the complete overhaul of SRB-4 started in summer 2004 when additional financing was opened through the purpose loan. In general repair costs amounted approximately 220 mln rubles.
The main repair works were carried out by the specialists from ZAO «Antikor» (Moscow), installation and adjustment of testing equipment, electrical works – consolidated company ÎÊÀ (S.-Petersburg), anticorrosive protection – «Petrospetsenergo» (Petrozavodsk).
According to preliminary calculations the modernized boiler is expected to increase its production rate by 15 per cent.
At the present time all three operating soda recovery boilers of the mill are integrated into power plant (PP) ¹ 2. Vladimir Rodionov, Head of Power Plant -2 tells about the future plans for modernization of equipment:
– Successful completion of SRB –4 overhaul allows us to start modernization of the other two boilers – SRB -2 and SRB -3. After the New Year holidays we are planning to shut down SRB -2 for two months. This boiler was totally modernized in 2000. And now it is time to carry out an additional repair. We have already bought equipment and now it is coming to the mounting site. According to the modernization project, SRB -3 will be stopped for the half-year complete overhaul approximately in autumn 2006.

How much should be weight in tons?

28.11.2005 Press release

On 25th November after the state inspection carried out at the screening station of ÎÀÎ «Segezha PPM» new electronic railcar scales VD 30-12 were put into operation. All installation and testing works of the scales took less than one and a half month. Nikolai Snarov, acting head of railroad plant tells about the performed work: - Railroad system of the mill works in condition of continually increasing load. 2800 wagons are handled per month, the third part of them is required to be weighted. The previous mechanical scales didn’t withstand such exploitation and therefore last year went out of order. We began to look for the substitution for it. We concentrated our choice on automatic scales produced by “AVITEK PLUS” company in Yekaterinburg, Russia. Having visited major enterprises where such scales are used we were assured that it is not only the most modern but also the most reliable equipment. This scales works automatically in respect of all types of wagons. It allows to measure precisely the weight of the cargo including liquids either in static or dynamic positions, on the run, that plays great importance for us. All installation works for the scales were carried out by us in cooperation with «Kredo» company from S.-Petersburg. The mounting was performed under supervision the specialists from Yekaterinburg. Simultaneously we carried out the complete overhaul of the large – all in all 400 meters – segment of railway lines. RAO Oktyabrskaya Railway is considered to be the State Verification for the scales. The weight testing railcar scales started to work in Segezha on 25th November. Alexander Bogdanov, Head of Transport of SPPM, announced that this year at the mill some important measures for the control improvement were made – both for imported and exported goods. Even in summer at the territory of the mill modern motor-truck scales appeared, now - railcar scales. Management of Segezha PPM believes that new equipment will help to solve the problem of negligent consignors and provide maximum accuracy during the registration of imported goods at the mill. Project for mounting railcar scales cost for the mill 7mln rubles, project payback – only six month.

Three sisters will pack everything

24.11.2005 Press release

Since 15.November Segezha PPM have mounted Triumph 5QT SM Servo – shopping bag making machine of Garant Maschinen origin (a subsidiary of Windmoeller & Hoelscher Group). On 25.November Segezha will start mounting of another machinery of Windmoeller & Hoelscher manufacture in the same converting plant – sack production line E-6. E-6 is mainly similar to its “older sisters” E-4 (year of installation - 2002) and Å-5 (2004). The main important difference – an absolutely modern, universal bottomer AD 8310. There is no equipment like that in Russia, even not all of the foreign sack manufacturers can boast of the equipment of that kind. Vladimir Prokhorov - chief expert for converting plant development – says, - Similar to two running sack production lines, we can make a PE insert in our sacks, change any format just in seconds, plan a non-standard placement of the valve - in short, we can satisfy any wish of the most captious customer. Thanks to flexographic printing machine ASTRAFLEX 6C (also Windmoeller & Hoelscher manufacturing), we can make color printing on the bag and on the bottom. We are going to increase production output after start-up of the new E-6 with operating speed up to 300 sacks per minute. Alt-M (Petrozavonsk) is going to mount the new production line under supervising of W&H experts. In the end of February 2006 the machine will be put into operation. Total cost of the machine and mounting works amounts to more than 200 million rubles. The project is financing out of the mill’s own proceeds and out of loan proceeds.

Segezha “TRIUMPH” for paper bags

15.11.2005 Press release

On 15.November Segezha PPM started mounting of Triumph 5QT SM Servo – shopping bag making machine of Garant Maschinen origin (a subsidiary of Windmoeller & Hoelscher Group). Polyform (St.Petersburg) is mounting the new production line under supervising of W&H experts. According to the time-schedule the machine will be commissioned in a month, on 15.December. A small Triumph machine (14 x 7 meters) of traditional for W&H white color is being installed in the converting department (Sack Product Line) and will allow to produce one or two-ply shopping bags, including PE-ply, and to paste-in handles automatically. The Triumph 5QT output is 55-60 thousand bags per shift, depending on a handle presence/absence, the machine will be run by three operators. The purchase contract was signed in June 2005, delivery took place in December this year. The project costs about 60 million rubles, it is financing out of the mill’s own proceeds and out of loan proceeds. Department stores, supermarkets, dry mix and wood charcoal manufacturers etc. will become customers of the new, ecologically clean and attractive bags. The marketing experts of Segezha can guarantee a firm demand for the new products due to rapid increase in retail trade in Russia and great attention to the packaging ecological compatibility. Before Segezha bought the machine, marketing experts had studied consumer packaging market. TRIUMPH turned out to be the best choice among more than ten options, especially as Segezha and W&H have long-term mutually beneficial partnership.

SEGEZHA GOLDEN MR. BOARD

3.12.2003 Press release

On the 25-28 November the Second International Pulp and Paper Products Exhibition PapExpo 2003 dedicated to the new technology, machines and materials was held in Moscow exhibition hall Sokolniky. Segezha products were traditionally presented there and awarded the highest prize as well.

papexpo_diplom.jpg papexpo_diplom1.jpg papexpo_diplom2.jpg papexpo_stend.jpg papexpo_stend3.jpg papexpo_stend3.jpg

At the contest Mister Board 2003 Segezha sacks collection made of extensible paper and kraft paper was awarded the Golden Medal "Paper Package". We would like to remind that Segezha PPM had been already awarded this year the Golden Medal "Package - Russian Star-2003" for its paper sacks collection. The contest was held during the VIII International Exhibition "ROSUPAK- 2003" in June.

JSC Segezha PPM press

Photo: Golden Medal and Diploma of PapExpo-2003; at the exhibition in Sokolniky.

PM10 MODERNIZATION CONTRACT

2.09.2003 Press release

Segezha PPM and Metso Paper have concluded a contract for rebuild of PM10 production line. It is planned to manufacture a part of this large order at an engineering plant in Petrozavodsk.

On 2 September 2003 the contract was signed by Vasily Preminin - general director of Segezha PPM and Kaj Lindroos - President of Board Business line of Metso Paper, in the presence of Sergey Katanandov -Head of Karelian Republic and Petteri Kotilainen - consul of Finland in Petrozavodsk

History
Top managers of Segezha PPM and Metso Paper signed a letter of intention to conclude the contract to rebuild PM10 on 3 July in Moscow.

The value of the contract was not announced then, but it was informed that this delivery order for final modernization of Segezha PM10 is the largest one in pulp and paper industry within the last 20 years. Now it is reported that rebuild of PM10 will amount to appr.40 MEUR.

North-West Bank of Sberbank of Russian Federation will grant a credit within the limits of the largest in Russia investment project for Segezha PPM modernization.

Following the future modernization, Segezha PM10 will be among the three similar best sack paper machines all around the world regarding technical and speed performance as well as paper quality. And cost price of paper from PM10 will be the lowest one in the world, experts presume.

The forthcoming rebuild of PM10 is the completion of its basic modernization.

In early 2002 there was installed a new electromechanical drive (Flender,Germany) and extensible unit (made by Voith/Austria and Petrozavodskmash/Russia) there.

Since 2002 Segezha PPM has been a sole manufacturer of high-quality extensible paper in Russia, it amounts to three fourth of total sack kraft paper sales in the world market and it is demanded by the Russian market.

As for Metso Paper this rebuild of PM10 is a completion of the work done too.

PM10 was made by Metso (Valmet) in 1973. It was Metso Paper that manufactured high consistency refining equipment put into operation in August 2002. The equipment increases paper quality, especially its strength, extensibility and air permeability.

Thanks to integrated modernization PM10 produces extensible paper to meet international standards, it was confirmed by experts of Frantschach - the largest company in the world pulp and paper industry.

Modernization of the whole line
However world market quality requirements increase, therefore not only PM10 will be under rebuild but the whole process line: from wood handling up to pulp production. And the reconstruction of all production units in the process line will be carried out simultaneously.

It is well known today Segezha will start producing pulp of high quality in the second quarter of 2004 at the rebuilt pulp line of Andritz Oy origin. They will supply the equipment before the end of this year. The contract between Segezha PPM and Andritz Oy on the pulp line modernization was signed in April in S.Petersburg. Total value of investments is appr. USD 15 mln. Segezha PPM attracted Sberbank's credit again to purchase this equipment.

According to the present contract between Segezha PPM and Metso Paper the rebuilt production line of PM 10 will be put into operation in the second quarter of 2004.

Press release Published Sep 02, 2003 www.metsopaper.com

Metso Paper to supply a large rebuild to Segezha Pulp and Paper Mill

Metso Paper will supply JSC Segezha Pulp and Paper Mill in Segezha, Russian Karelia with an extensive rebuild of their production line for extensible sack kraft paper. The rebuilt production line will start up in early summer 2004. The total value of Segezha's investment is appr. 40 MEUR.

The Metso delivery will include a stock preparation line with OptiFiner low-consistency refiners, pulp washing, short circulation, broke collection with OptiSlush pulpers, OptiScreen broke screening and a save-all system. The thorough modernization of the paper machine wet end includes a SymFlo headbox, and the modernisation of the press section is to include a SymBelt™ shoe press. The delivery also comprises a rebuild of the dryer section and air systems, a new reel, a WinDrum winder, and a selection of auxiliary systems. The automation systems are also in the delivery scope, among them a metsoDNA distributed control system, a PaperIQ quality control system and field instruments. Erection supervision, start-up assistance and training are in the Metso package as well.

The machine to be modernized, PM 10, was originally supplied by Metso (Valmet) in 1974. It has a wire width of 7.1 m. After the rebuild it will have a production speed of 750 m/min and will produce some 550 t/day. The design speed of new parts is 850 m/min.

Segezha Pulp and Paper Mill selected Metso thanks to their high technology, Metso's ability to handle the whole project - including automation systems, the short distance to many Metso units, and the good experiences gained in the high-consistency refining project in 2001-2002.

The Segezha Pulp and Paper Mill, formerly known as Segezhabumprom, is located in northwestern Russia in the Republic of Karelia, about 700 kilometers north of St. Petersburg. The Mill produces sack paper, some 230,000 t/y, with a basis weight range of 60 – 120 g/m2 on two machines: PM 9 (also supplied by Valmet, in 1973) and PM 10. Finished products are sold domestically and in export markets. The mill also produces 270 million sacks per year. Turnover is 125 MUSD and the number of personnel approx. 5300.

Metso Corporation is a global supplier of process industry machinery and systems. The Corporation's fiber and paper technology business area, Metso Paper, is the world's leading supplier of technology, systems and equipment for the pulp and paper industries. Metso's other core businesses are divided between Metso Minerals (rock and mineral processing) and Metso Automation (automation and control technology). In 2002, the net sales of Metso Corporation were EUR 4.7 billion and the personnel totaled approximately 28,500. Metso Corporation is listed on the Helsinki and New York Stock Exchanges.

 

THREE IN ONE

Press release

JSC Kondopoga, Segezha PPM and Karellesprom announced their intention to create during one year and a half the biggest integrated structure in timber industry complex of Russia

On the 16-th of July the meeting under the aegis of Head of Karelia Republic was held in Petrozavodsk. Managers of JSC Kondopoga, Segezha PPM and Karellesprom took part in this meeting. They discussed the situation in timber industry complex of Karelia. Three biggest companies supported the program- developed by the government- of first-priority measures in timber industry complex. And within the limits of this program announced their intention to organize in 2003-2004 a regional industry group. Corresponding memorandum was signed by general directors of the companies: Vitaly Federmesser (JSC Kondopoga), Vasily Preminin (JSC Segezha PPM) and Nikolai Bobko (Karellesprom).

A new regional industry group is foreseen to combine the potential accumulated by each company, to become united corporate system and to turn into integrated system. Altogether, these three companies will be able to strengthen the positions of the Karelian forest products at the world market, and reestablish industrial and economic relations, which have been lost for the last 10 years.

In the resolution the parties noted that the strategies of both pulp and paper mills must be completed very fast, considering coordination of further mutual activities. Karellesprom has got the task to work out - up to the end of the year - measures to advance in lumbering and regulate commodity flow in the region. As a result, we will have accelerated profound wood processing system inside Karelia and minimized round wood export.

Those, who signed this memorandum, made a request to the Government of Karelia Republic and Management of Natural Recourses Ministry (Russian Federation and Karelia Republic) to promote mutual activity coordination inside the designed structure, to speed-up the organizational reconstruction of the whole timber industry complex, and also to make a decision by December of this year ànd provide a forming industry group with a 49 years lease for the necessary forest areas.

The experts say that the realization of the intentions announced by the 3 biggest timber-industry holdings in Karelia will lead to the creation of the most powerful integrated structure in timber-industry complex of Russia, which will be aimed at inexhaustible high-performance forest exploitation and getting maximum value added during profound wood processing.

JSC Segezha Press-service PPM

SEGEZHA PPM AND WINDMOLLER & HOLSCHER:
ACTUAL PROGRESS, NEW PLANS

In late April 2003 Segezha PPM achieved some important strategic results

sacks-line24.jpg On 25 April 2003 a delegation of Segezha PPM headed by Mr.Andrey Zasorin - marketing and development director - visited Lengerich (Germany) and met top managers of Windmoller & Holscher. Managing director of W&H - Mr. Peter Steinbeck- took an active part in the meeting.

As it was agreed earlier, at the meeting specialists of Segezha PPM reported of the results they have achieved working at the new sack production line (the only one in Russia at present) that was installed last summer (2002). It was noted with satisfaction, that the line has been operated according to the design parameters. As a result, the Russian pulp and paper mill has offered packaging products of extended range, new quality and multicolor printing for about a year to both domestic and foreign markets.

Mr.Steinbeck and his colleagues were very interested in the report of Segezha experts in marketing regarding successful industrial test runs of 3- ply paper sacks, made of extensible paper at 14 building plants: Eurocement, Schurovsky Cement, Belgorodsky Cement, Novorocement, etc. Since August 2002 Segezha PPM - the first one in Russia- has produced extensible paper followed by modernisation of PM10 and start-up of high consistency refining unit. As it is proved now, these sacks will be able to replace 5-ply sacks made of standard sack paper. By the way, quality of Segezha extensible paper is highly appraised not only by domestic but also by foreign partners.

On 24-30 April another delegation from Segezha PPM headed by production director Mr.Vladimir Arsenyuk visited our customers-factories in Italy and Holland. End-users of our sack paper, in particular an Italian company Sakarta/Fiorini concern, are satisfied with the new product and are ready to purchase much more extensible sack paper with the Segezha trade mark. Even Frantschach - the world leader in sack paper production- admitted the quality of Segezha PPM products to come on European standard level. Frantschach office in Maastricht (Holland) tested almost 20 tons of the new extensible paper and rated it high, as Mr.Pavel Kozlov - export director of Segezha representative office in Moscow- indicates.

The management of Windmoller & Holscher was interested in the information. But Mr.Steinbeck was much more interested in the coming strategic plans of Segezha PPM, as Mr.Zasorin informed.

In early 2002 an updated vision of strategic development of the mill was made. General director of Segezha PPM Mr.Vasily Preminin reports that, 'Segezha PPM as a production site becomes customer-oriented company with new ambitious targets. Today we have 50% of Russian sack market share, our intention is to increase our market share up to 60-70% in 2-3 years, providing in addition new product quality and service.'

These ambitious plans are getting true already. In 2001 Segezha PPM produced and sold 194 mln sacks, in 2002 - about 236 mln sacks. The mill is going to increase sacks output up to 270 mln pieces in 2003 and to start advancing to foreign market. Since the beginning of the year more than 78 mln.sacks have been produced - 27% more than the previous year. Strategic development plan, made in cooperation with the largest Consulting company Jaakko Poyry/ Finland, assumes to double the cooking pulp output during the coming 5 years , to strengthen the position in sack kraft paper and sack market as well as to introduce bleached sulphate pulp and its products.
An important part of the strategy is an expansion of sack production in volume and range, its approach to end users. Particularly, some industrial sites in Moscow region are under study now, it is planned to start installation of production units there to make sacks out of Segezha paper. Moreover, it will be not only well-known sacks but also a new range of sacks for dry building mixes, sacks with white top, laminated ply, etc. These sacks were highly appraised by the world-known company Knauf, who placed a large order for the new sacks after the test run. New production units will be equipped with production lines of Windmoller & Holscher origin.

Mr.Andrey Zasorin says, that both companies -Segezha PPM and Windmoller & Holscher - have had already long partnership relations. In 1978 Segezha people got acquainted with W&H for the first time when the mill bought the PE - laminating unit. In 1989 W&H installed two sack production lines Å-1 and Å-2. Thanks to that fact, the mill set up its own record in 1991 - it produced more than one billion sacks! These lines have been still working: 15 % of sacks were made at Å-1 and Å-2 lines in 2000 , and 30 % - in 2001. Today we have a new round of relationship marking not only an installation of the new sack line but also a modernisation of the old lines. The negotiations on this matter between Segezha PPM and Windmoller & Holscher were held last year. Mr.Steinbweck expressed his readiness to continue long-term mutually beneficial cooperation with Segezha PPM taking into account the updated company's strategy.

Segezha PPM Press-service

Segegsky pulp and paper mill has aquired 25% of Karellesprom

At the beginning of June Karelian government will examine the packet of proposals of creation of the biggest north-west wood processing holding company on the basis of the largest wood processing company Karellesprom and a number of Segegsky pulp and paper mill. It was informed on Wednesday by press-center of Segegsky pulp and paper.

It was declared officially at the occurred beforehand evening conference of the admin of Segegsky mill. Segegsky mill has obtained 25% stocks of Karellesprom. Two representatives of mill CEO Vasili Premin and director of strategic development Andrei Zasorin have been included in Board of Directors.The holding company will specialize on lumber.

Timber industry complex is the priority pace-setter of The Strategy of social and economic development of North-West federal region to 2015. The substitute of plenipotentiary Lubov Sovershaeva has become the chairman of recently created The Association of north-west timber merchants. Centralization and extension of timber cutting undertaken in Karelia aims to raise competitiveness of regional forest exporters on international market where they are pressure tested by Finland.

print Reporter(Petrozavodsk) Friday, 31 may 2002

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Metso Paper To Supply Sack Kraft Refining Line To Segezha In Russia

Metso Paper supplies a new sack kraft refining line to JSC Segezha pulp and paper mill, the leading sack paper manufacturer in Russia. The new refining line will be installed on Segezha?s PM 10 with start-up in June 2002. Metso Paper?s delivery includes a DWA 945S twin press, a RGP 262 refiner, automation and electrification. Also, the erection and start-up supervision and operator training are included in the Metso Paper delivery scope. Segezha produces sack paper on two machines: PM 9 and PM 10. The end products go both to export and to the domestic market. The new refining line will be installed on the PM 10 and it primarily aims to improve the quality features of the sack paper for export. This project had been under preparation for a longer while and can be now realized as the ownership structure of the mill has been settled and the new management reassumed the upgrading plans. Metso Paper was selected as the supplier for this project after Segezha's people visited several mills using Metso Paper's equipment. The delivery contract was signed in Pertrosavodsk with the president of the republic of Karelia, Mr. Sergei Katanandov, being present in the ceremony. The president congratulated the parties and wished for the best of success for the project. (Source - Metso Corporation)

Segezha Pulp And Paper Mill Purchased 49% Shares Of JSC Pyalma Forestry

At yesterday's tender, the JSC Segezha Pulp and Paper Mill purchased about 49% shares of the JSC Pyalma Forestry. Apart from the mill, the tender was participated in by representatives of the companies Karellesprom and Lakhdepokhsky Forestry. Purchasing of shares of logging enterprises is carried out in accordance with a long-term program of the Segezha Pulp and Paper Mill for widening timber base necessary for increasing volumes of outputting pulp and paper produce. Such a step also agrees with the activities of a program worked out in Karelia for development of timber industry, which provides for development of large vertically integrated holdings, notes the mill's press service.

Today, the holding contains the companies Valdailes, Segezhales, and Chulino Forestry, as well as the JSC LDK Segezhsky. All these are wholly owned subsidiaries of the JSC Segezha Pulp and Paper Mill. Publication date: 12:55 25/12/2001 Subject: Economy Source: RIA "OREANDA" City: Petrozavodsk

PAPER CAPITALISTS

Another major European player, Swedish company AssiDoman, didn’t manage to keep to establish itself in Russia. The Swedes bought 57 percent of the shares in Segezhabumprom, but then began to demand tax breaks from the Karelian government.

AssiDoman twice stopped production at the plant, brought it to the verge of bankruptcy and finally ended up having to sell the shares to the Segezha Management Company, set up by 30 Russian pulp and paper mill managers. The management company then transferred the Segazhabumprom shares to the newly-created Segezhsky pulp and paper mill company and restructured the company’s debts, thus removing the threat of bankruptcy. The pulp and paper mill is now controlled by managers headed by Vasily Preminin, who was at one point appointed external manager of Segezhabumprom. all text

Segezha Mill to Install New Refining Line

Feb. 22, 2002 - Metso Paper said that it will supply a new sack kraft refining line to the JSC Segezha pulp and paper mill, the leading sack paper manufacturer in Russia.

The new refining line will be installed on Segezha's PM 10 with start-up in June 2002. The installation includes a DWA 945S twin press, a RGP 262 refiner, automation and electrification. Metso will also direct the erection, start-up supervision and operator training.

PM 10 produces sack kraft paper in a 60-110 g/m² basis weight range on a wire width of 7,100 mm.

The mill produces sack paper on two machines: PM 9 and PM 10. The end products go both to export and to the domestic market. The new refining line will be installed on the PM 10 to improve the quality features of the sack paper for export.

SOURCE: Metso Paper

INSTALLATION OF A SWISS PACKAGING LINE HAS BEEN STARTED AT ÎÀÎ "SEGEZHSKY PULP AND PAPER MILL"

Segezha, May 8 INTERFAX SEVERO-ZAPAD - The installation of a packaging line of the Swiss firm LEMB has been started at ÎÀÎ "Segezhsky Pulp and Paper Mill (Segezha, the Republic of Karelia, North-West RF).

Paper-making machine N11 had to be stopped because of the installation of the new equipment.

The installation of new equipment is supposed to have been completed by June 4, and in the middle of June, paper making machine N 11 will work with full capacity, making craft-line for corrugated board in rolls twice as more.

As Alexander Ivanov, technical director of OAO "Segezhsky Pulp and Paper Mill", told the correspondent, the agreement with the firm LEMB was signed last October, and the equipment was shipped to the mill in the second decade of April 2001.

The dismantling of the old equipment has been held since the middle of April without stopping paper-making machine N 11.

Segezhsky pulp and paper mill produced about 39 thousand tons of craft-liner in 2000. In 2001 about 60 thousand tons of craft-liner has been planned to produce at Segezhsky Pulp and Paper Mill.

ÎÀÎ "Segezhsky Pulp and Paper Mill" was registered June 8, 1999. Fixed capital is 790 mln rubles.

The capital is divided into 790 ordinary inscribed shares. ÎÀÎ "Segezhsky Pulp and Paper Mill owns 100% of shares.

PACKAGING UNIT IS BEING COMPLETED AT THE SEGEZHSKY PULP AND PAPER MILL

PETROZAVODSK, June 4 /The ITAR-TASS corr. Valery Potashov/. Installation works of the packaging line are being completed, mounted on the paper machine N11 at Segezhsky Pulp and Paper Mill.

After starting off the line, the mill will be able to increase the new types of production - craft-paper and craft-liner for corrugated board. After the reconstruction, the rolls 2700 mm in diameter and 4,5 t by weight (before the reconstruction it was possible to handle the rolls 1230 mm in diameter and 4,5 t by weight). It is exactly the former that meets the craft-liner market demands at present.

Paper-making machine N 11 is supposed to work with full capacity in the middle of June.