RUB 11 billion will be invested in production modernization at Segezha Pulp and Paper Mill, Segezha Group informed following a working trip of Artur Parfenchikov, the Governor of the Republic of Karelia, to Segezhsky district where he visited the Segezha Pulp and Paper Mill (operating as part of Sistema's Segezha Group) and held negotiations with Mikhail Shamolin, President and Chairman of the Management Board of Segezha Group.
To recap, the company's reconstruction program Segezha West was launched last year. "Handling environmental issues of the pulp and paper mill and Segezhsky district as a whole takes an important place in the production modernization project. The company has earmarked almost RUB 1 billion for this purpose," Mikhail Shamolin commented.
Installation works will begin at the pulp and paper mill at the end of 2020, new electrostatic precipitators with a capture efficiency of 97% will be installed on recovery units in 2021. The use of advanced technologies will significantly improve the gas trapping system and minimize the impact on the atmosphere as much as possible.
Large-scale modernization is also underway at the plant's treatment systems.
Segezha Group is a major Russian vertically-integrated timber processing holding with a complete cycle of timber procurement and advanced wood processing operations. The holding includes timber, wood processing, pulp and paper facilities. The company's representative offices are located in 11 countries of the world, its products are sold in more than 100 countries worldwide. Employing ca. 13,000 people, the company is the biggest forest user in the European part of Russia, the total area of leased certificated forest reserves reaches 7.42 million ha, 85.7% of them (6.36 million ha) certified according to voluntary forest certification schemes.
IFRS net loss of Segezha Group for the first half of 2020 was RUB 2.1 billion against a profit of RUB 4 billion a year earlier. Revenue went up 4.1% to RUB 31.2 billion from RUB 30 billion. OIBDA decreased by 19.9% to RUB 6.2 billion from RUB 7.7 billion, while operating profit decreased by 39.7% to RUB 3.1 billion from RUB 5.1 billion.
IFRS net profit of Segezha Group for the second quarter of 2020 increased by RUB 1.9 billion (152.1%) to RUB 3.2 billion against RUB 1.3 billion a year earlier. Revenue increased by 8.9% to RUB 16.9 billion from RUB 15.5 billion, while OIBDA decreased by 4.4% to RUB 3.6 billion from RUB 3.7 billion. OIBDA margin reached 21.2%.