Production of Arkhangelsk PPM, JSC is delivered to the home market and abroad. Strategic production lines of APPM, which give maximum sales volume — pulp and board. 77 % of income came from this kind of products in 2011. According to market condition the mill preserves optimal supply balance for export and home market with Russian market priority.

Foreign market

Due to the results of 2011 the main export product types are still pulp (51,2 % of export income volume) and board, including fluting (36,7 %).

Geography of export deliveries in 2011 covers 57 countries (2010 year — 51 country, 2009 year — in 57 countries).

The highest sales growth of pulp in 2011 was in Poland, Germany, Hungary, Latvia, Japan, Belgium, Slovakia and many other countries.

Main importers of containerboard in 2011 became Ukraine (18 % of export shipment) and Belorussia (14 %). A leader of the last years — Germany, — went back to the 9th place. Changes took place under the influence of market fluctuations at world markets.

Home market

Under the conditions of growing competition Arkhangelsk PPM holds one of the leading positions at the Russian market. Containerboard market share of APPM is approximately 25 % of Russian market total volume, and concerning pulp — 19 % from the volume of Russian goods market volume.

Containerboard, pulp and paper are strategic types of products at sales for Russian market, as in the previous years, its share was more than 85,5 %.

The list of customers of APPM’s corrugated products during the last years is stable. Old partnership connections allows the mill have rather high sales level, despite of high level of contest at corrugated products market.

The mill heads the Russian Federation list in output of exercise books (in 2011 — 178,1 mln pcs.). Market share of the enterprise at home Russian market is estimated in 25 %.

Writing paper (apr. 75 % of total paper sales volume) is a foundation of assortment. In this segment the mill has no competitors in European part of the Russian Federation.

Development strategy

Modernization and reconstruction of the capital funds was always the main aim of the APPM’s investment policy. To actualize it about 700 mln dollars were invested into production during the period 19982010.

Nowadays the mill is actualizing a top-priority investment project “Reconstruction of board plant” confirmed by Ministry of Industry and Trade of the Russian Federation and valued at 5,453 bln rub.

In year 2012 total volume of planned investment was about 2,2 bln rub. In March APPM and Andritz AG (Austria) signed a contract concerning construction of the new semichemical pulp plant. Equipment price is — 936 mln rub, plant construction is — 1,76 bln rub. Capacity of the new plant — 1 000 semichemical pulp tons per day, which will allow increasing the volume of high quality board and corrugated board output by 97 thousand tons per year. Start up of the new plant at APPM will be in April 2014. Putting the plant into operation will allow decreasing expenses for board and base paper for corrugating output increase their quality characteristics and significantly decrease product cost, by means of raw wood consumption decrease.

In 2012–2014 according to the investment project two BM (more that 2,8 bln rub) will be reconstructed and Heatpower station-2 at board plant (more than 1,3 bln rub.)

164900, Russia, Arkhangelsk region
Novodvinsk, 1 Melnikova St.

Enquiry service: (81852) 6-35-00