OREANDA-NEWS. On January 21 the week-long trip visit of participants of the working group on development of single-industry towns within the State Commission for preparation for the 100th anniversary of the republic continued in Segezha region. Head of the working group Rashid Nurgaliyev, Head of Karelia Alexander Khudilainen and Chief Federal Inspector in the Republic of Karelia Alexander Hynninen have visited Segezha Pulp-and-Paper Mill Inc., the town's primary taxpayer, to take a survey of the situation, and discuss plans for the future. Future of Segezha as a whole depends on stability of its work.

According to Director General of Investlesprom holding Anton Zavalkovsky and director of Segezha Pulp-and-Paper Mill Alexander Mitrofanov, the enterprise today works steadily almost at the peak of its production capacity. The volume of sack paper production within the period from January to December of 2013 has made 250,000 tons, having grown by 3% to the standard of 2012. Wages in 2013 have grown by 14%.

After the recessionary shutdown of the enterprise which had taken place two years ago the new team of managers has been working on restoration of main economic criteria and preservation of highly-qualified personnel, and in many respects has manages to accomplish these goals. However, in the context of modern competitive market the companies need constant investing in production development. Negotiations with Sistema JSFC, that in the near future intends to complete the transaction concerning purchase of assets of Investlesprom JSC, which has in possession such large enterprises of timber industry of the republic as Segezha Pulp-and-Paper Mill are in progress now.

Sistema joint-stock financial company is the largest publicly-traded diversified holding company in Russia and the CIS. It is now one of Russia's top ten companies by revenues and is one of the largest investment companies in the world.

Further development of Segezha Pulp-and-Paper Mill and the course of the transaction were discussed at the conference in the main office of the enterprise involving representatives of workers' association and trade unions.

According to representative of Sistema JSFC Andrei Egorov, within the scope of the basic conditions of the transaction signed in May of 2013 with the Bank of Moscow within VTB Group, the work on appraisal of assets of the holding is conducted in cooperation with the management of Investlesprom. The solution regarding the transaction may be made this spring.

Head of Karelia Alexander Khudilainen at the conference has added that on results of the recent meeting with the management and proprietor of Sistema JSFC Vladimir Evtushenkov it had been observed that the company would come into possession of Segezha Pulp-and-Paper Mill in March. Arrival of the strategical investor so significant will enable continuation of implementation of the priority Polar Bear investment project which purpose is creation of the largest enterprise producing bleached softwood pulp and hardwood pulp made of birch, crude softwood pulp made of pine blocks. Implementation of the Polar Bear project will open up new opportunities for the pulp-and-paper mill and will improve its competitiveness at the world level.

The project that the enterprise was dealing with since 2009 stipulates considerable investing. Representative of Sistema JSFC Andrei Egorov has confirmed the future proprietor's interest in fulfilment of the Polar Bear project in Segezha.

The investor realizes that implementation of the Polar Bear project will cost 1 billion Euros if we get involved in the transaction. We're ready for it, - Andrei Egorov said.

He has also added that Sistema JSFC has an understanding of the necessity of supporting investments and development of cooking production at Segezha Pulp-and-Paper Mill and logging in Karelia.

The transaction we're preparing is quite significant even on a global scale, - Director General of Investlesprom holding Anton Zavalkovsky has told. - The management of Investlesprom has no contradictions with potential investors intending to buy the enterprise, first of all, for its development.

Besides Segezha Pulp-and-Paper Mill, participants of the working group have visited perspective industrial sites in Segezha. As Rashid Nurgaliyev observed, in any single-industry town with the town's primary taxpayer it is necessary to develop supporting productions and alternative projects.

Detailed discussion of issues of development of Segezha region continued at the conference in the Administration of municipal formation.