Affiliated company of Arkhangelsk PPM, JSC – Arkhbum Tissue Group, JSC is planning to hold up to 15 % of tissue paper in Russia. It was stated by the member of the Board of directors Vladimir Krupchak.
According to his words, shareholder of Pulp Mill Holding company has a number competitive advantages. Among them - a vertical integration within the group of companies, which minimizes risks related to raw materials due to the fact, that assets in Vorsino of Kaluga region will work with fine fiber FSC-certified raw materials of Arkhangelsk PPM.
The factors of successful entry to the market include, according to Vladimir Krupchak, owned rail car fleet and motor vehicle fleet which will allow Arkhbum Tissue to minimize logistic expenses, unique location of the mill by the side of Moscow ring road, Central Federal District in general, as the major center of products consumption, perfect logistics (one of the most modern dry transport ports of Russia - Kaluga Freight Village – is located 2 kilometers from this place) and availability of highly qualified specialists, working at production departments of Holding as well.
“Now the capacity of the first order of our factory in Vorsino is 70 thousand tons of tissue paper per year with the perspective of a growth up to 210 thousand tons of products per year; this will partially satisfy the demand of tissue products in Russia” – noted V. Krupchak.
At the moment, the consumption of paper tissue products in Russia is about 3.5 kg/ person per year. In Europe it is 12-15 kg/person per year, in Eastern Europe 8-10 kg. According to the data of APPM marketing department, during 2018 country consumption of tissue paper will increase up to 500 thousand tons by the end of the year. It will early grow on an average by 4-6 % up to the level of 800 thousand per year and higher by 2030.