OREANDA-NEWS. February 27, 2010. Ilim Group’s locations have manufactured 2,337 thousand tons of pulp and paper products. Despite of crisis production level in 2009 was practically the same as in 2008.

Market pulp production amounted to 1,440 thousand tons, 3% down compared with twelve months of 2008 because of unprofitable viscose pulp line closure. At the same time production of core sorts of pulp, such as bleached softwood pulp and bleached hardwood pulp, went up 4% to 1,374 thousand tons. Board production rose by 9% to 666 thousand tons. Paper output was 204 thousand tons, down 15% compared with 2007 due to reduction in production of non-core sorts of paper — sack paper and wallpaper. Offset paper output was 107 thousand tones, 1% up on 2008.

As part of the wood costs optimization efforts, the Company's own harvesting (by OOO IlimSeverLes, the Bratsk and Ust-Ilimsk District Branches) has grown 7% to 7,1 million cubic meters of wood. The share of the Group's own supplies equaled 54% of the total supply volume.

Mr. Paul Herbert, Chief Executive Officer of OJSC Ilim Group, provided the following comment on 2009 performance results: "On the whole, our efforts in 2009 were focused on increasing overall Company efficiency, cutting costs, improving customer relations and our position in the market. The crisis recovery action plan allowed the Company to maintain its financial stability and ensure steady operation of its mills. We had updated our business plan and it was approved by the Board of Directors. Today we resumed active work on our key investment projects that had been postponed because of crisis".