LONDON, September 25, 2014 /PRNewswire/ --
Syktyvkar Tissue Group ("STG"), one of the largest vertically integrated tissue paper production companies in Russia and the CIS, brought online a new production unit with capacity to produce 35,000 tons of tissue and base paper per year.
This new production facility represents the largest investment project envisaged in STG's development strategy for the period 2011-2015. The total size of investment in this facility is estimated at about $100mln (RUB 2.8bln).
The launch of this fully vertically integrated production facility brings STG's total annual production capacity to 85,000 tons, with the company's main production unit in Syktyvkar having an annual capacity of 50,000 tons.
"We continue to enhance and modernise our operations across the business, and with the launch of this new production facility equipped by our Swedish partners Metso, we have also significantly increased our annual production capacity to 85 thousand tons. This is an important step forward for us, and will enable us to meet effectively the demands of our customers in the rapidly growing tissue paper market," said Mark Reznik, CEO of STG.
"The launch of this new facility represents a key milestone for the company, which continues to demonstrate strong results," said Andrey Yakunin, Managing Partner of investment fund VIYM, an investment partner in this project. "This will not only help the company to increase its level of productivity, but it will also help to expand significantly its product range in a market segment that has colossal scope for further growth in Russia and the CIS."
Equipment for the new facility was supplied by leading international company Metso, specialising in providing technology and services to the refining, mining, construction, energy and pulp and paper industries. Equipment included a complete high-speed tissue production line with stock preparation equipment, a cast iron Yankee cylinder and tissue paper machine. The 2.82-meter-wide tissue paper machine has a design speed of 2,000m/min. The facility is also equipped with automated systems supplied by Metso DNA and Metso IQ, and equipment for reprocessing scrap paper supplied by Kadant Lamort.
In September 2012, acting on behalf of a pool of investors, VIYM completed an acquisition of a stake in STG. Funds raised from the acquisition were used to finance the expansion of the company's production capacity and to expand its product mix.
For further information on the deal: http://www.viymanagement.com/en/news/326/
SOURCE UK Press Office for VIY Management