markets

The volume of the coated paper market in Russia last year amounted to about 200 thousand tons. At the same time, Russia buys all coated paper abroad - in Europe and China. But we don’t have our own chalk yet. Production should begin soon, but without government support it will be difficult to compete with foreign suppliers.

Domestic manufacturers are going to regain lost positions in the coated paper market
Photo: DPA/AFP

The paper we lost

The production of coated paper in Russia ceased in 2010, when, according to Rosstat, only 4 tons of this product were produced. Previously, coated paper was produced by the Vyborg Pulp and Paper Mill and the Syktyvkar Timber Processing Plant, the St. Petersburg Paper Mill of Goznak and the Moscow Technical Paper Factory "October". But the production volume fell from year to year: in 2000 it was about 2 thousand tons, and in 2009 - only 942 tons.

After the cessation of domestic production, 100% of products have to be imported - both from Europe and Asia. Over the past two years, China has been added to the traditional suppliers of coated paper in Finland, Germany and Lithuania. “Today there is a huge overproduction of paper in China: at the end of 2011 it amounted to 1.7 million tons,” says Vera Bubelo, director of sales of white papers at the Ilim group. “And if European manufacturers and the United States managed to protect their markets with protective duties, “In Russia, until now, the duty has been reduced, and Chinese manufacturers have flocked here as an interesting market. Over the past two years, they have significantly squeezed out European manufacturers.”

With a comparable level of quality, Chinese manufacturers are still losing in the competition: their delivery to the consumer is very long - the product arrives at the customer within three months. But European manufacturers have moved closer to us: a huge terminal was recently opened in Finland, which guarantees paper delivery within ten days.

Experts explain the lack of Russian production of coated paper by a number of factors. Firstly, the costs of creating a new production facility are significant - at least $500 million. The federal authorities could provide incentives for attracting credit resources, priority provision of raw materials for such projects and customs tariff regulation measures aimed at supporting Russian manufacturers producing import-substituting products. products. However, the state is in no hurry to offer adequate support measures for such projects. Secondly, many media outlets are printed abroad and do not need coated paper “at home.” And the printing houses that print their editions use imported coated paper.

Domestic producers

However, this year the first domestic coated paper should appear on the market, which can compete with imported manufacturers. The Ilim Group is preparing to launch a paper-making machine in Koryazhma (Arkhangelsk region), which will produce up to 90 thousand tons of cellulose coated paper per year. Vera Bubelo explains: “The production of coated paper is one of the most technologically complex processes in the pulp and paper industry, and there are only a few companies in the world that are successfully engaged in this work. We do not know anything about the intentions of other companies to start producing such products in Russia, especially in light of overproduction and capacity closures in Europe."

Indeed, so far there is no information about other projects to create capacities for the production of chalk. The only project in Russia to produce light-coated paper at the Kama pulp and paper mill was never implemented - the Investlesprom company was recently forced to sell it. “We have no experience in producing these types of papers. The market is quite difficult. The product is very delicate. In the West there is a long history of producing such papers. In Russia there is no such history,” Maxim Pisarev, commercial director of Investlesprom, explained at the international forum of the Adam Smith Institute. . The launch of production in Koryazhma in just a few years could lead to a serious reduction in the share of foreign manufacturers in the Russian market. Vera Bubelo believes that within a few years the plant will be able to occupy up to 40% of the domestic market: “We have developed several scenarios for entering the market. We pay special attention to distribution - distribution channels are mainly established through the market of large traders. These are large companies that have a network of warehouses throughout the country. But we have already negotiated with large printing houses and publishing houses that purchase paper directly from the manufacturer. According to our calculations, now the coated paper market is only 10% direct to consumers, who do not want to use traders and enter into contracts themselves. with the manufacturer. We expect to increase this figure in our sales to 20% and prove to those who do not yet work directly that we can cover their needs."

“Unfortunately, the market is not showing the growth rates that were predicted,” says Vera Bubelo. “This is due to the economic situation both in the world and in the country: it is not very favorable, and commercial printing best shows the state of affairs in business. But , according to our forecasts, demand for coated paper will grow by approximately 3-4% per year."

In addition to the Russian, Ilim Group is ready to consider nearby markets: “We already have applications. And although we are focused only on the Russian market, we will probably enter the Baltic states in the future, for example, because many Baltic printing houses print products for our market". The price of domestic paper will for now be lower than its European counterparts. After all, before setting comparable prices, it is necessary to win the trust of the consumer.

Ekaterina Golubeva

The Russians are waiting