Russia's Segezha Pulp and Paper development project passes public consultations; plans include increasing sack paper production by 300,000 tonnes/year

KARELIA, Russia , December 19, 2008 (press release) – Public consultations within the Segezha Pulp and Paper Plant, Inc., reconstruction and development project (Polar Bear) passed successfully in Segezha on December 17. Heads and experts of town and region administration, representatives of nature protecting organizations, private enterprises, trade unions, printed and electronic mass-media, ordinary citizens have taken part in the discussion.

Answering questions the Polar Bear project director Vadim Rafalson informed on the basic technological objects and terms of planned reconstruction of the plant.

In territory of the existing Segezha Pulp and Paper Plant, Inc., enterprise it is planned to construct a new line with a productivity of 530 thousand tons a year of commodity cellulose, as well as increase capacity of the plant in production of sack paper up to 300 thousand tons a year. The project provides almost nonwaste use of raw timber - imported wood chips and deciduous and coniferous pulpwood. Production of bleached cellulose at the updated enterprise may become a precondition for release of new production (white sack kraft paper, cardboard).

Implementation of the project it is planned to carry out in two phases. The first - construction of new wood-preparation shop (WPS) with raw material logistics infrastructure (construction of railway and automobile access roads, shoreline protection).

The second phase stipulates construction of other objects of the project (lines of fibre and regeneration of chemicals, objects of power engineering, a 'spot' of production of chemicals) in territory of now operating WPS and reconstruction of the station of biological treatment.

All technological decisions of the project are based on application of the best modern technologies in pulp and paper industry. At triple increase in production capacity, it will allow to lower the general level of environmental impact to minimum.

Polar Bear is a project of the most advanced enterprise where labour productivity will grow 7.5 times, and average wages - 3.6 times. Highly remunerative production also means solution of social tasks in the region due to increased assessments to the budget of Karelia.

Total amount of investments within the project makes approximately €850 million.

In 2009, according to the project schedule, it is planned to choose the general Designer and Suppliers of the basic process equipment, receive the status of the priority project in the field of forest exploitation, examine the project and purchase of equipment for the WPS's line and other objects of the second phase. Approving the project and necessary permitting by supervising bodies is expected in the second quater of the next year for the first reconstruction phase, and in the fourth quarter of the next year for the second phase. At favorable succession of events construction work within the Polar Bear project may start in the first quarter of 2009, and equipment may be installed in the middle of 2010.

On results of the consultations head of Segezha urban settlement has signed the Decision coordinating reconstruction of industrial buildings and constructions within the scope of the presented project.

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