League of Wastepaper Processors: wastepaper collection for containerboard production in Russia can triple

Moscow, April 11. Bumprom (Russian association of pulp & paper companies) has created a new NGO, League of Wastepaper Processors. An article by its president Andrew Guryanov posted at the website (liga-pm.ru) explains the mission and goals of the League.

Presently, State Duma considers amendments to the federal law “On Production and Consumption Wastes”. For the forest industry, the main outcome of these amendments will be abolition of licensing for collection and recycling. It is assumed that from 01 July 2014 all businesses of the industry will have to start working within the self-regulatory organization or cease operations.

League of Wastepaper Processors is going to become a self-regulating organization in this field, especially in the sector of wastepaper. Several large pulp and paper companies have already joined in: Kommunar mill, GOTEK, Perm Pulpmill Group, Kartontara, Naberezhnye Chelny board mill, SFT Group.

“The Western world has resolved this question. The state defined rules of the market, and the business exists organically and works within these rules. Returning to the question of draft law, we can say that it will create this set of rules for the whole industry of secondary processing in Russia”, Guryanov said.

About 45% of packaging cardboard for corrugated products is made from recycled paper today. Meanwhile, paper collection in Russia is still traditionally low. Potentially, it can be increased threefold, to the level of Western Europe. Most of the waste is collected in retail stores, while households are in fact the major source of wastepaper.

Price of wastepaper of MC-5B grade increased by 30% to 5,235 rubles per ton within one year. In addition, the industry is waiting for the launch of several major paper machines. The total market volume will soon reach 500,000 tons of containerboard, which will require 600,000 tons of wastepaper. Presently, paper collection throughout the country is hardly over 2 million tons.

According to Guryanov, collaboration is needed between the housing cooperatives, collectors of raw materials, waste processors and board makers.

Recently, UPM together with YUVI St. Petersburg (part of SFT Group engaged in collection and recycling of wastepaper) announced the launch of Paper Boom campaign for schools in St. Petersburg. Last year, similar campaign raised more than 600 tons of wastepaper. Prizes for school students included trip to Finnish UPM mill on the winter holidays, trips to YUVI Petersburg production base and souvenirs.