Kondopoga pulpmill managed to find new consumers and make newsprint price hikes

Finnish specialists advised Kondopoga pulpmill to convert one of the papermaking machines and increase speed at two other machines, but this will require considerable investments not yet affordable to the company at the moment, as mill’s Chief Executive Dmitry Turkevich said in an interview published at the mill’s website.

“Replenishing working capital is still one of the major tasks of ours and an enduring headache. We need additional financing and seek for an investor, but as you may guess, there are no takers wishing to invest into a loss-making enterprise under bankruptcy proceedings,” Turkevich said. “With the help of Bank Sankt-Peterburg managers and owners we are now developing the strategy of further operations with attracting investors who will help us finance raw materials procurement”.

Among other suggestions of the Finnish experts were stoppage of one papermaking machine and personnel cuts.

Despite continuing fall in newsprint demand in Europe and loss of global positions earlier, the company managed to win back its partners, find new customers and even raise newsprint prices, Turkevich said. “Now we work at framework (termless) contracts that entail additional agreements on delivery of every consignment. Sales market geography has not changed considerably – India, South-East and Central Asia, and South Africa,” Chief Executive concluded.