Karelia, Russia 06 May 2013 -- Kondopozhsky pulp and paper mill, one of Russia’s largest pulp and paper producers, plans to reach its design capacity by September of the current year, according to CEO of the company Dmitry Turkevych.
"By the end of the year we will bring the Kondopozhskiy PPM on a break-even operation, and thus completely stabilize the company," - he said.
Despite the fact that today the plant operates at more than 50 percent of its capacities with three paper machines launched with the machine for the production of paper wrapper, the company is still unprofitable.
In 2012, the mill’s net loss increased up to 1.573 billion rubles (USD$45 million), mainly due to decline of prices for newsprint in Russia and Europe.
According to Turkevych, the company’s cost of production remains at high level due to the lack of its own raw materials.
Kondopoga Pulp and Paper Mill - one of the largest in Russia and Europe, specializing in the production of newsprint. The company's share in the Russian market of newsprint is about 40 percent.
On March 6, the Arbitration court of Karelia has introduced a procedure for monitoring at the mill until September 9. The company's debts on bank loans account for more than 13 billion rubles.