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Vladimir Krupchak: “APPM achieved the best results in amounts of tax payments into RF budget system per 1 cubic meter of wood production”

12 nov 2020

Compared to Siberia and Far East, Arkhangelsk region works for its domestic market for a long time, it does not export round wood out of country. For the region, prohibition of export of raw wood is not of current interest, the issues of Forest management and State Forest Inventory are much more burning. It was stated by the member of the Board of directors of Arkhangelsk PPM and Group of Companies Titan, investment and development strategy adviser of Pulp Mill Holding Vladimir Krupchak.

With highest regard for the order of the President of Russia Vladimir Putin on full prohibition of export of raw or unfinished softwood and valuable hardwood and reforming of forest management system and control over the forests, Vladimir Krupchak pointed out that Arkhangelsk PPM and holding Titan have been producing the goods only with high added value.

GC Titan is general supplier of raw wood to Arkhangelsk PPM and Timber Mill No. 25, CJSC. Only by their own efforts, the companies of holding store up more than 5 mln. m3 of wood per year. Moreover, all cut wood is left in the region for processing.

“Owing to the formed up vertically-integrated structure, we built up practically nonwaste production, - pointed out Vladimir Krupchak. – Holding Titan supplies plank timber to Timber Mill No. 25, CJSC, pulp wood – to Arkhangelsk PPM. Chips remaining after sawn wood at the Timber Mill, is sent to the Pulp and Paper Mill. In this case the bark, splits and off-quality chips are sent to own boiler house of Timber Mill 25, CJSC, sawdust is sent for pellet production”.

He also reminded that the APPM is the core of vertically-integrated structure of Pulp Mill Holding, which specializes in the manufacture of corrugated board and corrugated packages. The corrugated board division – Arkhbum, JSC includes five branches – in Podolsk, two in Istra, in Voronezh and Ulyanovsk.

Using high-quality pulp for its further usage in the production of container types of board, and further in chain order – for the output of corrugated products and sanitary products, the Mill contributes significantly to the growth of volumes of exported products with high added value, thus, to the growth of branch GDP.

Arkhangelsk PPM extended the line of products to B&C segment. Semi-product of APPM – pulp – is used for production of sanitary goods. Arkhbum Tissue Group, LLC (Industrial Park Vorsino, Kaluga region) is the major investment project of Arkhangelsk PPM. The value of this project amounts to 11.5 bln. rubles. The capacity of the first stage of the factory is 70 thous. tons of sanitary goods per year with view to increase it up to 210 thousand tons of goods per year.

Vladimir Krupchak also told that using the synergy of all business processes in the context of vertically-integrated structure, Arkhangelsk PPM reached the best results regarding the amounts of tax payments to budget system of Russian Federation per 1 m3 of wood production.

“As you can see, Arkhangelsk PPM forms up its strategy on the solvation of tasks set by the President and the Government of the Russian Federation: the task of import substitution was set, we actively took part in its solvation, after setting of task concerning the growth of non-resource export – we produce high-technology products of added-value wood conversion, which is of high demand in international markets, - summed up Vladimir Krupchak.