Sylvamo leaving Russia, Svetogorsk Pulp and Paper Mill to sustain production levels
MOSCOW. May 13 (Interfax) - U.S.-based Sylvamo Corporation, a leading paper producer, is leaving Russia amid the events in Ukraine, the company said in its Q1 2022 financial reporting.
"We have made the decision to exit Russia. We will do so in an orderly manner and are conducting a process to sell our Russian business. We are working to reach an agreement and plan to complete this process promptly, including obtaining approval from our board, as well as the required government approvals to execute a transaction," the company said in the report.
In Russia the company operates the Svetogorsk Pulp and Paper Mill in the Leningrad region through non-public JSC Sylvamo Corporation Rus.
The Svetogorsk mill has an annual capacity of 720,000 tonnes of pulp, paper and cardboard. In 2021, Russia accounted for approximately 15% of Sylvamo's total revenues.
"The mill is currently working as usual," the Russian Industry and Trade Ministry's press office told Interfax, adding that the new owner would be named after the deal has been closed.
"No cutbacks in staffing and production volumes are planned, taxes and other payments are being remitted on schedule," it said.
At the beginning of March, Sylvamo announced a suspension of operations in Russia.
Svetogorsk Pulp and Paper Mill produces office and offset paper, cardboard and thermo-mechanical pulp for the domestic and foreign markets.