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Kagazy Recycling Begins Restructuring Initiative in Kazakhstan

Almaty, Kazakhstan, 20 May 2010 -- Kagazy Recycling LLP, central Asia’s largest producer of paper, corrugated board, and packaging, today announced a major operational restructuring initiative.

Three months ago, Kagazy Recycling engaged the services of Alix Partners, turnaround and restructuring consultants, whose experienced team in the paper sector drawn from the United Kingdom and Germany, have assisted the company in devising initiatives to focus its sales toward more profitable customers, increase the efficiency of its production line, and reduce the cost it pays for raw materials. The company believes these initiatives will increase its top-line revenues, improve its profit margin, and reduce its cost base. Kagazy Recycling is targeting a 40% increase in its EBITDA run-rate by the end of the current year, which would be record results for the company.

“Kagazy Recycling is the leading producer of paper and corrugated board in Kazakhstan," said Irina Yevtushenko, general director of Kagazy Recycling. "The company has achieved phenomenal growth in the past years to become the market leader in its sector. We have weathered the crisis much better than our competitors, some of which have cut back, or ceased operations entirely."

Added Tomas Mateos, the new chairman of Kazakhstan Kagazy JSC, Kagazy Recycling’s parent company, “We are already seeing significantly improved profitability following the measures that have been taken in the last six months. We are impressed by the quality of the local management and how smoothly we have been able to share the operational and financial improvement experience acquired in other markets with them.”

About Kagazy Recycling

Kagazy Recycling is part of Kazakhstan Kagazy JSC (Kagazy), the holding company of a group that is central Asia’s largest producer of paper, corrugated board, and packaging, and a leading operator of commercial warehousing and industrial infrastructure facilities.

Kagazy’s parent company Kazakhstan Kagazy plc, is effectively Kazakhstan’s largest industrial company quoted on the London Stock Exchange. Under new management since the end of last year, it has taken profound and radical operational and financial improvement measures to be able to guarantee the future of the group and the industrial base of Kazakhstan. By combining the strength of its existing local management with some of the foremost experts in performance improvement, the new management is achieving immediate results.

About Alix Partners

Alix Partners is a leading global business-advisory firm offering services across four main disciplines: operational performance improvement and strategic consulting, financial restructuring and bankruptcy reorganization, litigation consulting, and financial advisory services. The firm's expertise is in helping clients anticipate, evaluate, and successfully resolve urgent, high-impact business challenges in an increasingly complex legal, regulatory, and economic landscape. Drawing on the experience of more than 900 employees from 14 offices across North America, Europe, and Asia, the firm commits small teams of seasoned professionals to deliver results when it really matters. For more information, visit www.alixpartners.com.

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