Throughout the second stage of Segezha Group key asset’s modernization (part of Sistema JFSC) – Segezha PPM – production operations in Karelia hosted the delegates – suppliers of engineering equipment for erection of a new papermaking machine ¹11 – the leading global producer of pulp & paper industry machinery.

The site-tour was part of the monthly Supervisory board’s session addressing the issues of PMM equipment orderly assembly. Currently, construction entered into active phase: press and fourdrinier section have been set up, drying section construction is in progress, pipework and electric installation are underway.

The general contractor’s delegation was headed by Herbert Gray, Voith Divisional CEO, Europe, Africa and Middle East. The Russian counterparty was headed by Sergey Pondar, Segezha Group Vice President, Head of Paper and Packaging Division. The February session was attended by Sergey Pomelov, Segezha Group CEO.

- We thoroughly welcome cooperation with Voith, - Sergey Pondar noted. – I would like to lay special emphasis on top-management involvement into PMM construction project delivery, which is pivotal both for Segezha and for Voith. The viability of our project and our interaction can be proved by the following fact: in the course of our meeting, we brought up the issues of construction and further startup and commissioning of PMM ¹11 by the summer 2017.

The investment project of SPPM modernization suggests three stages and is slated for 2018. The total investments for the project will reach RUB 13.9 bln (incl. VAT). At the first stage the set of works designed to upgrade fiberline - digester ¹4 was completed at the pulp mill. This brought about the production yield in pulping by 28% from the current 900 tpd up to 1150 tpd. The second stage will be new PMM ¹11 commissioning scheduled for Q3 2017. This is the first Russian-wide project for a new PMM installation over the past 25 years.

The second stage of SPPM modernization in 2017 includes supply and set-up of a new unique 110-ktpa papermaking machine. The output volume of sack paper will hence grow by 40%, Sergey Pomelov, Segezha Group CEO commented.

The third stage will provide supply and commissioning of a new biomass-boiling unit generating steam for in-house engineering processes, to take place in 2018. The new equipment running at 120 tons of steam per hour will enable the mill to use wood residues and sludge as fuel and thus reduce the use of heavy fuel oil, lower its emissions and offset environmental impact.

By 2020, following the implementation of the investment project for Segezha PPM modernization, circa 60% of sack paper produced by Segezha Group will be supplied to in-house converting facilities. The rest will be marketed externally.