On July 9, 2020, an agreement was signed between the region and Arkhbum JSC on the implementation of the investment project at the Representational Office of the Ulyanovsk Region in Moscow.
The document was signed by Sergey Morozov, the Governor of the Ulyanovsk Region, Sergey Vasin, CEO of the Ulyanovsk Region Development Corporation and Irina Galakhova, CEO of Arkhbum JSC.
The corrugated packaging production plant will be located in the Zavolzhsky district of Ulyanovsk. The company is rebuilding the production facilities of the former Elektromash plant.
The Arkhbum presented its project at the Investment Council in December last year and now Arkhbum starts the active stage of the project implementation after the signing of the agreement. The new plant will create more than 300 new jobs for residents of the region and will invest 2.5 billion rubles in the development of the region. The amount of tax revenues is expected about 50 million rubles to budgets of all levels, which is essential for the region’s economy in such a difficult period,” - said Sergey Morozov.
According to Sergey Vasin, the Head of the Ulyanovsk Region Development Corporation, the subdistrict, where the former military camp is located, was severely damaged after the reduction of Elektromash and 31 Arsenal. The Arkhbum - one of the leaders at the market for the production of corrugated packaging in Russia - has already rebuilt the site. We hope that the new project will allow us to restore the subdistrict and provide its residents with jobs. In addition, the company forms a new sphere of duties in the region. We are now negotiating with a technical university and specialized secondary educational establishments on assistance in the developing of human resources,” - Sergey Vasin summed up.
The annual capacity of the new production will be 192 million m² of corrugated products. The investor expects to launch the plant in March 2021. Until 2023, the company plans to expand the production and increase the production facilities.
“Our new plant will not only be equipped with the state-of-the-art equipment from leading world suppliers, but also it will be extremely ecofriendly, as the Ulyanovsk site of Arkhbum JSC will operate on container board of Arkhangelsk PPM, a raw materials certified according to the most popular forest certification plan. In the region, we will only process the mill’s raw materials into corrugated board and corrugated packaging at the corrugator. The average level of wages for the industrial worker jobs will be at least 35 thousand rubles,” - said Irina Galakhova, CEO of Arkhbum JSC.
According to CEO of Arkhbum JSC, all holding companies have created favorable working conditions for employees: the free comfortable bus to the place of work, the canteens for meals, the relaxation rooms, the spacious and bright offices, the showers and locker rooms, the high-quality work clothes. This all allows positioning Arkhbum JSC as a responsible employer.
Vladimir Krupchak, the Member of the Board of Directors of the Arkhangelsk PPM, expressed confidence in the success of the new project, including due to the huge support of the company by Sergey Morozov, the Governor of the region, and the Ulyanovsk Region Development Corporation.
According to Vladimir Krupchak, the shareholders of Pulp Mill Holding (headquarters in Vienna, Austria) have a policy on strategic investments, the two postulates of which have been constant for many years - the sustainability of the market and the availability of raw materials.
That is why the holding is consistently building its strategy for the development of production within the vertically integrated structure. The new investment project in Ulyanovsk for the construction of a corrugated plant will make it possible to produce demanded types of products, since the Volga Federal District is one of the leading region in the country in terms of industrial development and one of the main agricultural regions of Russia, producing about 30% of agricultural products.
The Ulyanovsk site of Arkhbum JSC will increase its share in the packaging materials sector.
Vladimir Krupchak emphasized that the company is fully provided with raw materials: now, the Arkhangelsk PPM supplies the container board for the production of corrugated products to its four processing corrugated sites of Arkhbum - in Podolsk, Istra-1 and Istra-2, Voronezh.
Arkhbum JSC is a subsidiary of Arkhangelsk Pulp and Paper Mill JSC (the sole shareholder is Pulp Mill Holding).
The main business direction is corrugated packaging production.