OREANDA-NEWS. On 12 February 2009 was announced, that Ilim Group mills produced 2 mln 345 thousand tons of pulp and paper products in 2008, i.e. down 0.5 per cent over 2007 results.

Market pulp production totaled 1 mln 492 thousand tons, 4.1 per cent down compared with twelve months of 2007. Containerboard production rose by 12.9 per cent to 612 thousand tons. Paper output was 242 thousand tons, down 6.6 per cent compared with 2007.

The reduction in annual pulp and paper production volume was due to shrinking manufacturing capacities in 4Q 2008 caused by the global financial crisis and economic recession.

As pulp and paper production volume reduced, The Company optimized costs by reducing consumption of its highest cost wood and cut back own harvesting volumes at IlimSeverLes, ULiL and IlimSibLes. The Company harvested 6.7 million cubic meters of wood, which is 6 per cent down on 2007. The share of own wood supplies accounted for 48.3 per cent of the total supplies volume.

According to Paul Herbert, Chief Executive Officer of Ilim Group, the Company's priorities for 2009 will be to retain its financial stability, increase overall Company efficiency and search for new opportunities during the crisis period which would secure Ilim's long-term competitiveness and performance.