Industry Press Releases

Segezha Group has joined the European Association of Sack Kraft Paper Manufacturers CEPI Eurokraft

Thursday, Dec 15, 2016

Segezha Group (part of Sistema JFSC) has become a regular member of CEPI Eurokraft Association. A large majority of the Association’s board adopted this resolution at the session headquartered in Copenhagen (Denmark).

The affiliation approval came after the visit of Elin Floresjö, Secretary General of CEPI Eurokraft to Segezha city (Republic of Karelia) with the site-tour of two large production plants: Segezha Pulp and Paper Mill and Segezha Packaging.

In her recent function as engineer-ecologist, international insurance risk manager and BM-5 production manager at Nordic Paper Bäckhammar Mill (Norway), Elin Floresjö inspected the modernization procedures at SPPM, and namely, fiberline upgrade at the pulp mill and examined advanced paper sack production facilities of Segezha Packaging.

The receiving party conveyed to Secretary General of CEPI Eurokraft that boiler upgrade brought about a 28% increase in output capacity of the mill  - from the current 900 tpd up to 1 150 tpd. The production yield for the 9-month period of the current year has reached circa 204 000 t of paper, 213 500 t of pulp has been cooked in the boiling units. Over the same period, paper sack sales have seen a 10% increase year-on-year (and reached 990.6 mln pcs). In 2017, the new 110 000 tpa paper-making machine producing all types of paper will be rigged up at the mill.

As a result, the sack paper production yield at SPPM will grow by 40%. Elin Floresjö outlined the dynamic changes within the Group, highlighting the significance of new PMM -12 construction as part of production facilities upgrade.

“One of our priority tasks – is to supply the market with high-grade paper and packaging manufactured domestically, making the best use of renewable timber resources”, - the Group’s CEO Sergey Pomelov stated in this regard.

The main driver of business expansion and Segezha Group’s consolidation on the Russian and global markets is implementation of an ambitious investment program aimed at brownfield expansion and upgrade operations throughout the main business segments. Nowadays, Segezha Group holds the 4th place globally by output of high-grade unbleached sack paper and is the second in Europe (16, 5% share) in terms of paper sack production. Currently the Russian paper packaging market share of the Group stands at 52%.

Sack paper, produced by Segezha Group is high-strength wrapping paper used for sacks and consumer bags manufacture. Its main features are extra tensile properties and air permeability, making the products, wrapped in kraft paper, breathe and maintain quality by temperature and humidity fluctuations.

Before co-opting the Russian company, the regular CEPI Eurokraft consisted of 10 member-companies (from Sweden, Poland, Austria, Spain, Croatia, Estonia, France and a number of other countries). The overall output of kraft paper thereof adds up to 2.5 mln tpy.

Segezha Group is one of the largest Russian forest industry holdings with the vertically integrated structure and a full cycle of logging and added-value wood processing. The holding comprises Russian and European enterprises in the forest, wood processing and pulp and paper industries, as well as paper packaging. The geography of the Groups’s branches encompasses 12 countries. The production facilities are located in 8 countries, including 6 regions of the Russian Federation.  The company’s products are exported to 87 countries across the world. The staff headcount of Segezha Group totals 13.000 people.

Segezha Group is the largest forest user in the European part of Russia with the total area of forest lease of over 7 million hectares (MHA). 95 % of products is certified. In 2016, the complex afforestation area will exceed 21,000 hectares.  Segezha Group ranks: No 1 in Russia (52%) and No 2 in Europe (16,5%) for paper sack production, No 1 in Russia (71%) and No 4 in Europe in terms of high-quality unbleached sack paper production , No 5 in Russia and the world’s No 7  for large-sized birch plywood production, No 1 in Russia for sawn timber production – 904 thousand cubic meters per year, and No 1 in Russia for glulam house sets – the volume stands at 25,5 thousand cubic meters per year. The output of glulam wooden structures amounts to 58 thousand cubic meters per year.

The ongoing investment program is estimated at over RUB 40 billion.



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