High export ambitions for Ilim Group to China

Ilim Group, a leading Russian manufacturer of P&P products, will become an exclusive supplier of bleached SW pulp for one of the largest plants in Northeast China. The first production line started operations last month

Liaoning Yusen Sanitary Products Co, Ltd tissue plant was built by Baoding Yusen company and co-financed by Xiamen C&D Corporation, a large Chinese distributor and one of Ilim’s key partners in the People’s Republic of China. Bleached SW pulp will be delivered to the new plant as part of the Silk Road project.

“Ilim has been operating in the Chinese market for 25 years. Over these years, together with our partners we have succeeded in developing a vast and reliable logistics network using opportunities offered by the Silk Road project that is rolled-out as part of the Belt and Road initiative. Supply of pulp to the new plant is another step towards unleashing Ilim’s export potential and expanding Ilim’s presence in the Chinese market”, said Ksenia Sosnina, Ilim Group CEO

The tissue plant plans to produce 60 thousand tons of tissue in 2020 and increase its output up to 160 thousand tons in 2021. The full design capacity of the plant will total 360 thousand tons of products per year. The plant will be fully ramped up after 2022.

“After the ramp-up, this plant will be the largest tissue manufacturer in the northeast region”, said Cao Zhenlei, Chairman of the China National Household Paper Industry Association and China Paper Association.

The first production line was started up on November 11th in Liaoning province. Su Mali, owner of Baoding Yusen company, and Cao Zhenlei, Chairman of the China National Household Paper Industry Association and China Paper Association, took part in the official launch of the first production line.

The Northeast of China is one of the key markets for Ilim Group, considering its geographical proximity to Ilim’s Siberian Mills.

Currently, Ilim Group supplies 1.6 million tons of raw materials to more than 500 plants in various regions of China. Four years from now, Ilim plans to operate in all regions of the People’s Republic of China and in 5 years Ilim’s exports are expected to increase up to 2.4 million tons per year. By 2025 the aggregate production output of Ilim Group will exceed 4.5 million tons per year. Currently, Ilim is implementing a large-scale investment program to increase the aggregate output of its mills by 1 million tons per year. Construction of a new pulp and paperboard mill in Ust-Ilimsk with a capacity of 600 thousand tons is one of Ilim’s key projects with a start-up scheduled for 2022.