Ilim Group and Orgkhim Biochemical Create Biochemical Joint Venture in Russia
Mr. Nikolay Khodov, CEO of Orgkhim Biochemical Holding and Ms. Ksenia Sosnina, CEO of Ilim Group, signed an agreement to set up Amber Stream LLC, a joint venture with 50/50 participation. The new JV will produce a wide range of pine chemical products with a high added value.
July 13, 2017 - Ilim Group and Orgkhim Biochemical Holding have signed an agreement to set up a 50/50 joint venture, Amber Stream LLC, which will produce a wide range of pine chemical products with a high added value, including unique products completely new to the Russian pine chemical industry.
Amber Stream will set up its first production line in Koryazhma (Arkhangelsk Region) at Ilim's pulp and paper mill — the Group's flagship manufacturing facility in terms of capacity and product mix. The project involves an upgrade of the pine chemicals plant to allow for value-added raw materials processing in order to manufacture new environmentally friendly biochemical products.
Amber Stream's main product-line will include upgraded rosin esters, tall oil fatty acids and their derivatives. In addition, the JV will be the first in Russia to introduce manufacturing of sterols, a completely new to Russia array of products in high demand from pharmaceuticals and nutraceutical industries.
Alexander Emdin, Vice-President Finance of Ilim Group, has been elected as Chairman of the Board of JV Amber Stream LLC, and Aleksey Krylov, former Technical Director at Orgkhim, has been appointed as CEO of the new JV.
According to JV management, licensing and start-up is scheduled for the fourth quarter of 2017.
“Our company's development strategy through 2030 involves a higher level of diversification and exploration of new opportunities,” said Ms. Ksenia Sosnina CEO of Ilim Group. “In addition to our traditional and still growing segments such as pulp and packaging materials, we are resolute to develop other promising opportunities, including biochemical.”
Mr. Nikolay Khodov CEO of Orgkhim Biochemical Holding, explained, “Amber Stream business seeks to capitalize on strengths of vertical integration, which will have a favorable impact on the product quality, delivery time precision, and customer service level. The JV will operate both on domestic and global markets. The consolidation of pine chemicals assets and products from two partners will allow the JV to build up a tangible presence and force on the global pine-derived chemicals market.”
SOURCE: Ilim Group