Kondopoga newsprint mill is bankrupted, plans to launch second paper machine in mid-March

Petrozavodsk, March 13. Arbitrage court of Karelia regarded Kondopoga mill’s request on bankruptcy on March 06 and approved to introduce bankruptcy administration at the mill, with Andrei Yenkov appointed external mill manager.

Liabilities of the mill exceed 13 billion Rubles (€326.3 million). Introduction of external management will save company’s facilities and equity in order to convert production lines for new products.

Presently, Kondopoga mill is loaded at 75-80%, most of the workers are laid off.

On February 26, acting Chief Executive of the company Viktor Tolstov met Karelia governor Aleksandr Hudilainen and later had talks with mill managers and engineers on further cost-cutting measures and ways to get rid of non-core costs.

The mill accumulated enough wood to work with two papermaking machines. Presently, PM8 is working. This machine has recently executed large order from Indian wholesalers. Mill managers are planning to launch PM9 in mid-March.

In cooperation with its recent investor, Bank Sankt-Peterburg, the company agreed to establish a trade house and appoint Aleksandr Mozgovoy its director. He earlier managed EnergoSberezhenie LLC, a company that helped Kondopoga mill to enter wholesale energy market. The trade house will procure raw materials and energy for the mill and sell ready-made goods.