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Ilim Group Reviews 2021 Performance, Plans to Expand Exports to China

In 2021, Ilim's exports to China totaled 1.4 million tons, including increased kraftliner volumes and significant volumes of bleached softwood pulp.

March 30, 2022 - Ilim Group recently published a report on its performance in 2021. The company produced 3.64 million tons of finished products, and pulp continues to make-up the major share (2.16 million tons) of Ilim's production volumes.

Ilim continued to increase the share of packaging materials in its product portfolio. Last year this segment accounted for about a third (815 thousand tons) of the company's production volumes.

In 2021, Ilim Group's operating EBITDA totaled USD 1.1 billion. The company allocated USD 594.5 million for implementation of its investment projects, including USD 115.96 million for environmental initiatives, implementation of which will allow Ilim to reduce its emission and discharge parameters in the short term. In 2021, Ilim's Koryazhma Mill received an integrated environmental permit confirming its compliance with high environmental safety standards.

In 2021, Ilim continued to implement the Big Ust-Ilimsk project, its flagship initiative with a CAPEX worth USD 1.3 billion. Start-up of Ilim's new KLB (kraft linerboard) Mill is scheduled for the end of 2022. Ilim will allocate USD 309.5 million for implementation of this project in 2022.

Expanding Exports to China

Ilim said China remains a priority market and the company intends to expand its presence in all Chinese regions. In 2021, Ilim's exports to China totaled 1.4 million tons, including significant volumes of bleached softwood pulp. In 2021, Ilim Group also increased kraftliner volumes exported to the Chinese market. The KLB Mill start-up as well as upgrade of the existing facilities will allow Ilim to increase the aggregate volume of its exports to China up to 2.4 million tons by 2025, the company said.

Reforestation

Ilim noted that it places a strong focus on reforestation activities, which cover an area of 50 thousand hectares per year. In 2022, Ilim plans to build a new forest nursery in Bratsk with a capacity of 7 million ball-rooted seedlings per year with a possibility to expand the nursery capacity up to 12 million seedlings per year. The new nursery will ensure availability of the planting stock for Ilim's Branches in Bratsk and Ust-Ilimsk as well as for the new KLB Mill.

Ilim Group has three pulp and paper mills in the Arkhangelsk (Koryazhma) and Irkutsk (Bratsk, Ust-Ilimsk) Oblasts, two modern corrugated box plants in the Leningrad and Moscow Oblasts, and Sibgiprobum engineering and design institute (Irkutsk). Ilim Group exports its products to more than 70 countries worldwide. To learn more, visit: www.ilimgroup.ru.

SOURCE: Ilim Group

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