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Ilim Group Submits Investment Project In Irkutsk Region

08.02.2008

Ilim Group presented a 2008-2012 Siberia investment project during a task force meeting headed by Viktor Dolgov at the Irkutsk region Administration office today. It is required that the company should gain support by the regional authorities in order to submit its project application on the federal level and obtain the status of a priority investment project.

Ilim Group Siberia project, as well as the company's development plans, was presented by Deputy Director of Ilim East business unit, director of Ust-Ilimsk branch Vladimir Batischev, and director for cooperation with governmental and municipal bodies Dmitry Chuiko.

The company's top managers gave a detailed description of the project's aims, stages, dynamics of output and sale revenues, as well as increase of Irkutsk region budget tax revenues induced by the investment project. In particular, they noted, total pulp and paper output by Ilim Group Siberian companies will rise to 1640 thousand tonnes, with the first office paper-making machine launched on the territory from the Urals to the Far East. As a result, sale revenues from advanced woodworking will grow 20% per 1 cu metre of wood, while Irkutsk region tax revenues from Ilim Group branches will go up over 50%.

Output growth will require a greater amount of raw material. In 2007, the company processed about 8 mln cu metres of wood in Siberia, while by 2012 it will need up to 9.2 mln cu metres. To solve this problem, the Group relies both on the region's support and on its own active development of forest management infrastructure. Specifically, Ilim Group plans to build 271 km of year-round main road in Irkutsk region and Krasnoyarsky Kray by 2012, which will solve the raw wood delivery problem.

The task force approved the project and suggested that it should be submitted at the meeting of the regional investment committee under the Irkutsk region governor, planned for February 22.