OREANDA-NEWS. May 27, 2010. Kagazy Recycling LLP announced a major operational restructuring initiative. Three months ago Kagazy Recycling engaged the services of Alix Partners, the leading turnaround and restructuring consultants.

Their experienced team in the paper sector drawn from the UK and Germany, have assisted the сompany in devising initiatives which will focus its sales towards more profitable customers, increase the efficiency of its production line, and reduced the cost it pays for its raw materials. The сompany believes that these initiatives will increase its top-line revenues, improve profit margin, and reduce cost base. The сompany expects a 40% increase in EBITDA run-rate by the end of the current year, company said in a statement received by Lesprom Network.

Irina Yevtushenko, General Director of Kagazy Recycling comments on the initiative: “Kagazy Recycling is the leading producer of paper and corrugated board in Kazakhstan. The company has achieved phenomenal growth in the past years to become the market leader in its sector. We have weathered the crisis much better than our competitors, some of which have cut back, or ceased operations entirely”.

Tomas Mateos, the new Chairman of Kazakhstan Kagazy JSC, Kagazy Recycling’s parent company pointed out: “We are already seeing significantly improved profitability following the measures that have been taken in the last six months We are impressed by the quality of the local management and how smoothly we have been able to share the operational and financial improvement experience acquired in other markets with them”.

Kagazy Recycling is part of Kazakhstan Kagazy JSC the holding company of a group that compromises Central Asia’s largest producer of paper, corrugated board and packaging.