OREANDA-NEWS. October 14, 2009. In light of the coming governmental meeting on tariff policy, National press coordination council held a meeting where a possibility of decrease of import duties on coated paper and paperboard was discussed, as Investlesprom holding informed Lesprom Network.

Sales and Marketing Director of Investlesprom CJSC Alexei Vdovin commented on the current situation in the coated paper and paperboard sector. Today, most coated paper and paperboard grades which are in demand among polygraphist companies, are either not produced in Russia totally or produced in small volumes. Existing custom duties on import of those grades create a natural and obvious controversy between paper producers and polygraphists. Paper producers need these preferences in order to have favourable investment conditions, while polygraphists feel these duties are slowing down the industry.

In the recent years, the matter of restrictive duties on some coated paper grades has been discussed. A 15 per cent import duty makes polygraphists uncompetitive and they have to print their products abroad.

However, Investlesprom developed a strategy of gradual launch of production of the whole range of coated papers which are in demand in Russia.

As Lesprom Network informed earlier, Investlesprom company finalizes its first LWC-paper project, LWC-Kama. By the end of 2009, it is planned to finish construction of the LWC-producing line at Kama pulp and paper mill.

Investments into LWC-Kama project are estimated at the level of 4 billion roubles (\\$135 million), while the contract value amounts to over Eur 30 million. Vaahto Oy (Finland) and Andritz (Austria) equipment is installed at the enterprise, as the company’s representative informed.

During 2010, the enterprise will reach its full capacity, 85,000 tons of coated mechanical paper annually. This exceeds all Russian polygraphist industry needs by 25%, Alexei Vdovin reported.
If import duties for this product are not cancelled, the payback period of the project will amount to ten years. Along with that, prices for Kama pulp and paper mill grades will be even slightly cheaper than that of the imported grades of similar quality.

By the end of 2010, Investlesprom plans to prepare a feasibility report and start implementation of the second project, Vologodskaya Manufaktura. The project entails construction of roll and sheet paper production line (with light and medium coating) with a capacity of 600,000 tons annually in Vologda region in five years.

Therefore, Russian polygraphist industry needs will be fully covered, even with taking into account predicted growth in paper demand, supposes Vdovin.

At the meeting, the company also made a proposal concerning tariff policy: to conserve the duty on the paper grade which will be produced by Kama pulp and paper mill (an Investlesprom enterprise) in a few months, to cancel duties on some grades that can not be replaced with imported products and decrease duties on some grades already produced in Russia.