Heinz Zinner: Arkhangelsk PPM was not affected by dramatic changes in global PPI

During 2013, changes in the global pulp and paper industry have been quite dramatic. The list of market outsiders included producers of newsprint and LWC, coated and printing papers.

According to the Chairman of the Board of Arkhangelsk PPM Heinz Zinner, consumption in these segments of the pulp and paper industry decreased substantially, partly due to the general economic situation, partly because of the electronic media development. The result of this situation was the closure of a number of players, restructurings, mergers and acquisitions.

Assessing the place and role of Arkhangelsk pulp and paper mill on the industry map, Dr. Zinner noted that the plant was practically unaffected by these dramatic changes, as its main operating niche is the production of containerboard and bleached pulp. The enterprise is provided with forest raw materials, energy resources and continues large-scale investment projects that are designed to reduce costs under conditions of Russia’s WTO accession.

Despite the favourable forecast of the World Bank and economic institutions of the EU countries, the restructuring of the printed media, according to Zinner, will continue. The growth of the consumer sector will require more packaging, and this is good news for Arkhangelsk PPM.

“But in Russia, first of all, we are facing a very high competition from imported (especially European) testliner grades and new capacities of Russian players producing recovered board,” he stressed. “This is a challenge for manufacturers of virgin-fibre board, as it can’t be sold in the Russian market”. However, Zinner expressed confidence that the experienced team of the company will be able to tackle this challenge. Moreover, a global player, even such a small one, is always subject to risks, especially those that it can’t control, Zinner concluded.