Ilim signs agreement on cardboard shipments from new plant in Siberia with six Chinese companies

MOSCOW. Oct 18 (Interfax) - Ilim Group , which will open a new pulp and cardboard mill in Ust-Ilimsk this year with a capacity of 600,000 tonnes of kraftliner per year, has signed strategic partnership cardboard supply agreements with the six largest participants in the Chinese pulp and paper market.

As stated in the company's press release, by 2025, Ilim expects to increase the volume of exports of its products to China 40% to 2.4 million tonnes from 1.7 million tonnes (in 2022).

Supply agreements have been signed with Xiamen C&D Paper and Pulp Company, Suifenhe Sandu Papermaking Company, TC International, Jia Hui Trading, Suifenhe Sanxia Economic and Trade Company and Shanying International Holdings.

The construction project for the pulp and cardboard mill in Ust-Ilimsk started in 2018. The plant includes a wood processing plant, an evaporation station, and a causticizing and lime regeneration workshop. The project includes construction of a lime recovery kiln, a cardboard making machine, the launch of softwood and hardwood pulping lines, the installation of a soda recovery boiler and bark boilers, and the construction of a warehouse. The plant is planned for launch by the end of 2023 (it was originally planned to open in 2022).

After the pulp and paper mill reaches its capacity of 600,000 tonnes of kraftliner (cardboard, which is 80% cellulose and 20% a mix of virgin fibers) per year, total annual production of all Ilim products will reach 4.3 million tonnes (versus 3.63 million tonnes in 2022).

In Russia, Ilim accounts for 77% of all commercial pulp produced, 16% of all packaging materials, and 25% of all white paper, company data says. About half of the Ilim Group's products are exported to China, where it is the largest supplier in the segment of pure cellulose corrugated materials.