A view of the cellulose industry in Russia

Pulp and paper industry in Russia is steadily developing

Paper endures everything. The pulp and paper industry in Russia is steadily developing.

The pulp and paper industry (PPI) in Russia is steadily developing under the current difficult conditions. There is no shortage of paper towels and toilet rolls, and import substitution processes are proceeding faster than expected. This optimistic information was officially announced at the PulpFor industrial exhibition in St. Petersburg.

Strength test

The project, which celebrated its thirtieth anniversary this year, brought together about a hundred participants from most regions of Russia, as well as Belarus, China, Turkey, Iran, India and other countries.

Of course, companies from St. Petersburg and the Leningrad region were presented at the stands. The list includes Northwest Carton Service, Petromash Service, Pulp and Paper Service, Corrugated Technologies, Neohim, etc. … Whatever you say, the northwest of our country is rich in pulp and paper industry companies. For example, our dairy packaging, as well as office paper, is used in every corner of our country.

The Svetogorsk Pulp and Paper Mill turned 135 this year, and this fall it was officially deregistered. Now the company is called NPAO Svetogorsk Pulp and Paper Mill, and the St. Petersburg Pulp Invest company has become its new owner. To date, the main brand line of the SvetoCopy company includes three products, including SvetoCopy ECO. We recall that this paper was created in the shortest possible time this spring in the wake of an unexpected shortage. Unlike the usual classics, Eco papers have a vintage ivory shade. However, the product complies with GOST.

“Now the market has recovered. Almost all domestic pulp and paper mills, like ours, have returned to the production of classic white paper. Nevertheless, we continue to produce our “crisis” innovation,” said Alexey Grishin, director of environmental protection, labor protection and industrial safety of the Svetogorsk Pulp and Paper Mill.

Boiling, boiling, kettle

After all, most of the equipment and raw materials used in domestic pulp and paper mills are produced abroad. Accordingly, the refusal to cooperate with Western partners has created many problems for this industry. Therefore, it is quite logical that at almost every stand there are proposals for import substitution.

Representatives of the Russian company COTES Engineering spoke about organizing a consortium of several Russian companies to create soda recovery boilers (SRB) needed in the technological cycle of the pulp and paper industry. Currently, there are only a few companies in the world that produce such boilers. Over the past fifty years, this equipment has been supplied to Russia from Finland and Austria, but today not only deliveries have stopped, but also support services for facilities previously operated by Russian enterprises. At the same time, the country does not even have up-to-date design documentation for this equipment. Currently, the development of domestic RMS is underway, and the delivery and installation of equipment is scheduled for 2025.

The Chelyabinsk manufacturer “Koelgamramor” presented a technology for bleaching paper. Specialists in creating granules and powder from natural marble, the company’s employees chose microcalcite as a solution to the problem – ground marble, which is used as a filler for cardboard and technical paper.

The Bryansk company “Cutting Tools” presented knives and blades for the production of sanitary products, paper and cardboard. And the Karelian company “OPTI-SOFT” has a unique system for planning and managing the production of Kiev products for our market.

Employees of the Perm company producing coated paper and cardboard “Kama” spoke about the successful results of import substitution

By the way, during the exhibition the interim results of the work of the voluntary forest certification system “Forest Standard” were announced.

“The system is currently provided in 34 regions by more than 100 certificate holders and almost 800,000 hectares of forest,” said Nikolai Shmatkov, director of the National Association of Forestry. – The growth of certification is due to demand in the domestic market. Independent legal confirmation and sustainability, environmental responsibility of forest management are required by many major players in the Russian market, including manufacturers of retail, containers and packaging.

Particular attention was paid to the pulp and paper industry in the circular economy system.

“When in 2006 the company for the collection and primary processing of waste paper (UVI St. Petersburg) appeared in the structure of our company, our organization became a vertically integrated company,” said Anatoly Safronov, Director of Corporate Communications at SFT. Group. “At that time, we did not fully understand all the benefits of this decision. But the turbulent situation that we have been observing recently has shown us the full range of growth points. As a result, we managed to maintain maximum stability and even growth in containerboard production and ensure them, along the chain, from loading our corrugated board capacities. Our customers have no problems with delivery, terms and quality of the product. While other companies had problems with the shortage of waste paper.

Trade without borders

In addition to the immediate activation of import substitution processes in the Russian market, a trend has emerged for the formation of new international trade projects. Representatives of foreign companies (mainly Asian) have expressed their interest in cooperation with Russia. This was also confirmed by the largest Iranian paper mill, Iran Rusa Caspian Paper Industries.

Bahar Tehrani, the company’s export manager, emphasized: “The main material that our company works with is cellulose. At the same time, there are no forest products in Iran, and they are shipped from Indonesia and Canada. “Iranians are interested in producing pulp in Russia and exporting it to Iran for further production. There is a possibility that a joint pulp and paper factory will be built in the future.”

Today, 75% of our products are exported to more than 60 countries around the world. And the geography of deliveries will expand in the future, as new destinations from the list of friendly countries open up, said Dmitry Kryuchenko, Deputy General Director for Sales of the Volga Nizhny Novgorod Company.

Starting in 2021, the company is implementing a five-billion-ruble investment project that provides for the modernization of production equipment, the launch of a waste paper line, as well as increasing the efficiency of the energy complex. By 2025, the company plans to increase the share of packaging paper in its product portfolio to 70%.

Newspaper or labels?

Currently, there are 180 pulp and paper industry enterprises in Russia, the volume of pulp production is about 8.8 million tons (eighth place in the world), and the volume of paper and cardboard production is about 9.5 million tons. According to Roslesinforg, in the period from January to September 2022, the production of paper and cardboard products in Russia increased by 3%, and the production of all pulp and paper products – by 1.3%. It seems that the industry has practically not been affected by the sanctions recession. The exception was the production of wallpaper, which decreased by almost 20%, but in recent months experts have observed a positive trend even in this category.

Speaking about current trends, it is worth noting the optimization of the environmental direction. In addition to paper cups, paper hangers and even cardboard furniture were presented. As it turned out, a cardboard chair can easily withstand a weight of 500 kg.

At the same time, almost all market players are now reorienting their production, focusing on demand. In most cases, the production of newsprint and graphic paper is being abandoned in favor of packaging materials and labels. According to the European Printing Paper Association, demand for newsprint in European countries fell by 13.1% in September 2022 compared to the same period last year. The situation is similar in Russia.

Top Cellulose Producers in Russia
Key and Important Factors for the Presence of Iranian Producers in the Russian Market

According to the initial research conducted on the cellulose industry in the large Russian market and considering the key factors:

High and continuous quality of manufactured products
Preferential tariffs on import duties of Iranian goods to Russia
Low export costs of Iranian products to Russia compared to Western goods
The proximity and proximity of Iran and Russia as a logistical advantage and the possibility of exporting Iranian goods to Russia by various methods such as land, rail and sea transportation in the shortest time and at low shipping prices
The absence of a large part of the market from famous Western brands
The possibility of rapid expansion of market share and access to the competitive and trade space in Russia

It can be said that there is a high economic justification for the entry of the esteemed company ” ” into the large Russian-Eurasian market, and the “Fardad” Group of Companies is proud to establish effective and successful joint cooperation in this direction.