Segezha Group to Install New Paper Machine at Its Sokol Pulp and Paper Mill

The new paper machine will quickly switch between greaseproof and sack paper manufacturing, which will allow the Sokol mill to effectively meet consumer requests.

Sept. 3, 2021 - Segezha Group, a subsidiary of Sistema PJSFC, is implementing a large-scale investment project to build a new paper machine (PM) at its Sokol Pulp and Paper Mill in the town of Sokol, Vologda Oblast, Russia.

The total investment is over RUB 11 billion (approx. US $151,000).

According to Segezha Group, the productive capacity will quadruple — from 20 to 80 thousand tons per year — and over 100 new jobs will be created for Sokol residents. Taxes and other payments will amount to RUB 1.6 billion per year.

The full range of equipment will be designed and supplied by the German company Bellmer. The new machine will be 135 metres long and will be built in a new hall next to the existing production facility. The new PM will be designed to ensure sustainability and a closed-loop production concept. The latest two-level wastewater treatment system will be installed.

The implementation of the project will help significantly increase production efficiency and make full use of pulp cooking facilities. The new PM will quickly switch between greaseproof and sack paper manufacturing, which will allow the mill to effectively meet consumer requests.

"The fast food industry, restaurants, coffee houses and bakeries are the main consumers of greaseproof paper. They account for more than 90% of its consumption," said Alexander Kharitonov, Vice President for Commerce at Segezha Group. "At the same time, there is growing concern about the environment. People are trying to protect nature and choose biodegradable, environmentally friendly greaseproof paper and packaging whenever it is possible. These are the products that our holding company produces. Therefore, we believe that capacity expansion is an optimal response to the consumer demands and the market transformation we are observing."

Sokol Pulp and Paper Mill is the only manufacturer of greaseproof unbleached paper in Russia. It is widely used in the food industry for packaging, baking and roasting.

In a press release, Segezha Group said, "After modernisation is completed, the Sokol Pulp and Paper Mill will retain first place in Russia and second place in Europe in the unbleached greaseproof paper sector. Moreover, the impregnation of the paper will be fully environmentally friendly. There is rising demand for such products both in Russia and all over the world. This project will allow us to replace import products and supply more to foreign markets of high-margin greaseproof paper."

Commissioning of the new paper machine is scheduled for 2023.

Segezha Group (MOEX: SGZH) is a Russian wood processing group with the largest vertically-integrated structure and a full cycle of lumbering and wood substantial transformation. The holding includes both Russian and European timber, woodworking, pulp and paper industry enterprises, as well as paper packaging production enterprises. The Segezha Group’s assets are located in 12 countries. To learn more, visit: segezha-group.com

SOURCE: Segezha Group