The Expert Council of the Industrial Development Fund (IDF, VEB.RF Group) supported the construction project for the second phase of the mill for the production of sanitary tissue products in the Kaluga region.

 IDF approved a loan under the Priority Projects program in the amount of 2 billion rubles to Arkhbum Tissue Group Ltd (IE Vorsino, Kaluga region, a subsidiary of Arkhangelsk Pulp and Paper Mill JSC).

Due to the IDF loan, the Company will launch the second phase of the mill for the production of sanitary tissue products under its own Soffione brand. The production capacity will double and amount to 140 thousand tons of finished products per year.

Arkhbum Tissue Group will significantly expand its product range by installing a second paper machine (BDM-2) and new converting lines. In particular, it is planned to start manufacturing of products intended for out of household use (paper towels with Z and V folds, industrial rolls).

The raw material for manufacturing the products will be primary bleached pulp of softwood and hardwood, produced at the main enterprise of Pulp Mill Holding in Russia - the Arkhangelsk Pulp and Paper Mill.

 The applied technologies will allow producing products with improved indicators of volume, softness, embossing, various shapes and complexity.

More than 200 jobs will be created during the implementation of the project.

The total investment of Pulp Mill Holding in the second phase of Arkhbum Tissue Group will amount to more than 10 billion rubles.

"The Company is successfully implementing a project for the construction of the next phase of the mill. The support of the IDF will allow us to purchase modern equipment from well-known world manufacturers," said Irina Galakhova, Director of Arkhbum Tissue Group Ltd. "We have been fruitfully cooperating with the Fund for a long time and thanks to its assistance we launched the first phase."

The head of the Company reminded that the commissioning of the BDM-2 and the start up of serial production is scheduled for the first quarter of 2023.

Reference

Arkhbum Tissue Group Ltd (IE Vorsino, Kaluga region) is the largest investment project of APPM. Its cost is estimated at more than 30 billion rubles.

Currently, the company successfully sells products throughout Russia, CIS countries and Europe under its own brand Soffione.