Ilim Completes Equipment Purchase for Its New Pulp and Paper Mill in Ust-Ilimsk

Ilim pulp and paperboard mill in Ust-Ilimsk

The construction of Ilim's new pulp and paperboard mill project, with a CAPEX of USD 1.2 billion, was launched in 2018. The mill will house a kraft linerboard machine with a production capacity of 600 thousand tons per year.

Aug. 13, 2020 - Ilim Group continues to implement the project for construction of a new pulp and paperboard mill (PPM) in Ust-Ilimsk, Russia, in accordance with the project schedule.

Installation of main buildings and facilities is currently in progress at the construction site. All main process equipment has been purchased, its delivery to the construction site is under way. More than 100 vehicles carrying equipment units for the future production line arrived at the mill construction site.

Delivery of the first lots of equipment and parts for the Cooking and Washing Area, Vacuum Evaporation Plant and Woodroom took place in July. The first containers with the KLB machine equipment are expected to be delivered in October.

In order to ensure continuous implementation of the project, Ilim has invested in the construction of a new concrete plant and crushing and screening complex that provide the future PPM construction site with concrete.

The PPM construction project team is fully staffed, recruitment and training of PPM operators is in process. Ilim works closely with the regional authorities to jointly develop the city's social infrastructure.

"Ilim's new mill is a unique innovative project that is unparalleled in Russia and has very few comparable facilities globally," said Kseniia Sosnina, Ilim Group CEO. "Its production process is based on the cutting-edge technologies and is in compliance with international environmental standards. Main custom designed equipment was manufactured by Andritz and Voith, our long-standing partners and leading manufacturers of process facilities for the global pulp and paper industry.

"I am certain that Ilim will be proud of its pulp and paperboard mill in Ust- Ilimsk, which will strengthen Ilim's long- standing partnership with its customers in China and become the next step in the strategic development of our company," Sosnina concluded.

Ilim Group in the spring of 2019 signed a contract with Voith to supply an XcelLIne paper machine. With an annual output of 600 thousand tons, this custom designed KLB machine will be the largest in the world in terms of kraftliner (virgin board) production capacity. The equipment will be delivered to Ust-Ilimsk as pre-assembled Mill Installation Units. The heaviest element of the KLB machine, Nipco-P center rider roll, will weigh 79 tons.

Ilim's new recovery boiler, supplied by ANDRITZ, fully complies with highest environmental standards by minimizing the environmental impact through high boiler efficiency and availability as well, as a modern combustion air system. Moreover, this RB will be equipped to handle all non-condensable odorous gases generated in the new pulp line in any foreseen operating situation. This will ensure safe and odorless pulp production.

PPM Background Information

The construction of a new of a pulp and paperboard mill project with a CAPEX of USD 1.2 billion was launched in 2018 and will be completed in 2022. The project involves construction and launch of a Woodyard, Evaporation Plant, Caustic Plant; Lime Kiln, KLB machine, launch of Softwood and hardwood kraft pulp lines, installation of a Recovery Boiler and Bark Boilers, and construction of a Warehouse.

Implementation of this project will allow Ilim Group to increase production output of board and other packaging materials by another 600 thousand tons. Delivery of this project will help Ilim reinforce its presence in the packaging segment, primarily in the growing Asian markets. Upon completion of the investment project in Ust-Ilimsk, Ilim Group will become one of the largest manufacturers of unbleached packaging materials globally with a total board output of 1.5 million tons per year, bringing its aggregate production output to over 4.4 million tons per year.

Ilim Group, with headquarters in St. Petersburg, Russia, operates three large pulp and paper mills and two modern corrugated box plants. The business assets are located in Koryazhma (Arkhangelsk Oblast), Bratsk and Ust-Ilimsk (Irkutsk Oblast), Kommunar (Leningrad Oblast), and Dmitrov (Moscow Oblast). For further information, visit: www.ilimgroup.ru.