Kama PPM changed ownership and intends to increase LWC paper output

Kama PPM, a former asset of Investlesprom, changed its owners to the Vice-President of PIK Industry Mikhail Tyasto and the top managers of Latvian Irita-Lat, Kommersant business paper reported. The sources of the newspaper believe that the ultimate beneficiary can be the owner of FK Otrkytie and the head of PIK Industry, former senator from Perm region Sergey Gordeev, but he disproves this assumption.

The owners intend to increase the production of LWC paper by half from the beginning of 2015, and the road map for further development of the asset will be developed by February. In the LWC segment, Kama is the only one on the Russian market (“Omela” coated paper of higher density is produced in Koryazhma by Ilim Group, who is also the only player in its segment). The production of offset paper was bringing constant losses to the mill, so shifting to LWC is likely to bring profitable growth, assumed WhatWood analysts: it is a technically modernized asset, although indebted to the energy companies. In its paper quality, the mill competes with imported brands.

The market enjoys strong demand, and given the sharp increase in foreign currency exchange rates and a 10% duty on imports of coated paper since 1 September (this duty concerns some of the Kama PPM products, medium-density coated papers), it can be expected that the company will feel confident in the market in the short-term, WhatWood analysts conclude.