Russia’s Segezha Group to build one of country’s largest pulp and paper mills


The Segezha Group, one of Russia’s leading timber producers, which is part of the local financial conglomerate AFK Sistema, plans to build a new pulp and paper mill in the Russian Karelia region within the next years.

The new mill will produce over 850,000 tons of pulp per year and will be part of a newly established pulp and paper cluster in the region, consisting of JSC Segezha PPM, LLC Segezha Upakovka and LLC Segezha West. The overall volume of investments in the project is estimated at RUB 100b (US$ 1.33b), with this being a record figure for the Russian timber sector in last years.

In the meantime, alongside with the building of a new production facility the company is furthermore active in the modernization and reconstruction of Segezha PPM JSC, the world’s third largest producer of high quality kraft paper, which is located in the same Karelia region.

The plant has a current production capacity of 360,000 tons per year, which is expected to be increased up to 420,000 tonnes starting from 2022.

About 70% of its products are exported to over 70 countries. The company employs approximately 2,000 local residents. Investments in the project will amount to about 7b rubles.