OREANDA-NEWS. January 21, 2008. Ilim Group companies produced 2 mln 587 thousand tonnes of pulp and paper products during the year 2007, 4.8% up year-over-year. Market pulp output grew 4.8% totaling 1 mln 555.9 thousand tonnes, board output went up 0.1% to 755.7 thousand tonnes. Paper output went down slightly (0.6%) amounting to 258.8 thousand tonnes.

Pulping totaled 2 mln 539.3 thousand tonnes, 2.4% up year-over-year. Hardboard output saw the largest growth among all mechanical woodworking products, it went up 20% totaling 45.8 mln square metres. Woodworking product output also rose significantly, 16.7% to 9.8 thousand cu metres. Plywood output was at 140.3 thousand cu metres, 3% up. There was a slight downturn of 0.9% to 471.7 thousand cu metres in market lumber output. Over the twelve months of 2007, logging companies of the Group increased logging by 7.4% to 7.12 million cu metres of timber. Timber supply by Ilim Group’s own companies went up still more (7.9%) to 6.53 million cu meters. The share of supply by the Group’s own companies was 47.6% of total wood supply. The proportion is in full compliance with the company’s plans in shaping the optimized raw wood supply structure based on the analysis of the current market situation.

Paul Herbert, General Director of Ilim Group, said in his comments on the year’s results: “In 2007, the company saw fulfilled a number of complicated projects which were unique in many aspects. At the beginning of the year, all the company’s branches, as well as the central office, introduced SAP accounting system in three parallel ledgers: Russian accounting, tax accounting, and international standard. In the middle of the year we completed conversion of all Ilim Pulp’s companies to a single share and established a new company, Russian pulp and paper industry leader. In the autumn, Ilim Group formed a joint venture with International Paper, strengthening its leading position in the industry.

Together with our partners we developed an investment program with a volume of $1.6 bln for the next five years. The company will be launched in 2008. This is the first time that such an amount is to be invested in domestic forestry. All this, combined with excellent production and financial figures, creates a sound foundation for the company’s successful development in 2008.”