Södra leaves Angara Paper pulpmill project in Russia

Växjö (Sweden), January 18. Södra decided to leave the project with Angara Paper company to build a Eniseyskiy LKhK pulpmill in Russia. Swedish company was invited to take part in construction of a greenfield mill in southern Siberia. Södra’s role in the project was to be an industrial partner and to handle the marketing and sales of pulp from the planned mill.

“The scope of the project has changed from the original plan. From our perspective, the project no longer fits in with our future strategy and we have therefore chosen not to continue with our involvement”, said Gunilla Saltin, Acting CEO and President of Södra Cell.

The project of Eniseyskiy pulpmill has long and difficult history. At the APEC summit in Vladivostok Japanese company Marubeni finally concluded a contract with Angara Paper to finance construction of the mill and purchase of equipment. Marubeni is also going to build a port on Yenissey river for the mill. Angara Paper’s project will be financed at minimal interest rate by the Japanese bank for international cooperation.

Total investment scope of the project is $3.2 billion. It is planned to establish annual production of 900,000 tons of softwood bleached pulp, 300,000 tons of dissolving pulp as well as 380,000 cu m of lumber and 100,000 tons of pellets. The project will create 4,500 jobs, including 3,500 in logging.

Södra Cell is world’s third largest producer of market pulp with annual volume of two million tons.