Engineering, construction and services company KBR (NYSE:KBR) revealed on Tuesday that it has won a contract from International Paper for the provision of total maintenance services for a Russian paper mill in Svetogorsk
Tissue products - sold under the brands Tork and Zewa - are also produced in Svetogorsk
, close to St Petersburg.
The existing two hygiene plants are tissue mills located in the neighboring Russian town of Sovetsk--where the first construction phase of a brand new tissue mill was recently completed-and in Svetogorsk
The company operates as a new building and refurbishment contractor and developer mainly in the Imatra region of Finland, but derives about 30% of its net sales from Svetogorsk
"International Paper has been a committed part of the Russian forest-products industry for seven years, through the ownership of our Svetogorsk
Mill, and we look forward to continuing to encourage the strategic development of the industry," Faraci said.
With a stronger balance sheet and some cash in the bank, IP made its own statement on where it believes the global pulp and paper industry will do well this year by speculating about new investments in Brazil, packaging projects in China, expanding Svetogorsk
in Russia and looking at bolt-on corrugated businesses in Eastern Europe and the Mediterranean areas.
In June, International Paper signed an agreement to buy OAO Svetogorsk
, a Russian pulp and paper business, to expand its operations in the Russian and Eastern Europe markets.
The new order would allow Finland to import wood from Russia only through six international border crossings between the countries and when the Salla and Svetogorsk
border crossings are opened later in the year, also through them.
mill in Russia produces uncoated freesheet and liquid packaging board (340,000 metrics tons/yr) and the mill plans to install a 200,000 metric tons/yr BCTMP line based on aspen in the near future.