Ilim Group signs an agreement to form JV with Orgkhim Biochemical Holding in Russia
13 July 2017
Ms. Ksenia Sosnina, CEO of Ilim Group, and Mr. Nikolay Khodov, CEO of Orgkhim Biochemical Holding, have 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, including unique products completely new to Russian pine chemical industry, as the company says in the press release received by Lesprom Network.
Amber Stream will set up its first line in Koryazhma, Russia, at Ilim’s Mill, 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.
JV’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. According to JV management, licensing and start up is scheduled for 4Q, 2017.
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.
JSC Ilim Group is Russia’s pulp and paper industry leader, with biggest recorded market share, production volumes and size of investments, and one of the largest industry players on the global scale.