A new line at Balakhna Paper Mill Volga, which will produce thermo-mechanical pulp, has commenced operations in the Nizhny Novgorod Region.

The launch was attended by Deputy Head of the Russian Ministry of Industry and Trade Viktor Evtukhov and the head of the region Gleb Nikitin.

Evtukhov called this project a priority in the sphere of forest management. Due to this fact the mill now has the right to conclude the rental contracts for forest areas on favorable terms, if this territory is intended to provide new production facilities with raw timber. He also reminded that the company is one of the 50 biggest woodworking enterprises in Russia. Its products are in high demand in the foreign market - about 70% of the total volume is exported.

Moreover, the mill actively receives governmental subsidies for export. Over the last 3 years, the company received almost RUB 1 billion in subsidies.

The Balakhna Paper Mill (Volga) is the oldest paper mill in Russia, which produces newsprint. The investment into the wood processing project has reached almost RUB 1.5 billion. The new line was established with the support of the Industry Development Fund, which provided a soft loan of about 400 million rubles.

Having updated its production capacity, the company intends to increase its paper output by 20% to 320 thousand tons a year.

Made in Russia // Made in Russia

Author: Ksenia Gustova