OREANDA-NEWS. Franz J. Marx, CEO of Ilim Group, delivered a speech today at the Hawkins Wright Shanghai Symposium, an international pulp and paper conference held in Shanghai.

In his speech, Ilim CEO spoke about the impact of the current macroeconomic environment in Russia on the development of the Russian pulp and paper industry, current industry trends, and Ilim's development strategy, in the Chinese market in particular. According to Mr. Marx, Ilim Group expects Russia's economic growth recovery in the short term and the fostering of production growth driven by the ruble's devaluation. On the global level, analysts predict an increase in demand for paper and board driven primarily by the development of the packaging and tissue segments in the emerging markets.

Franz J. Marx also pointed out that the Russian pulp and paper industry is well represented in the emerging markets, such as China, Eastern Europe and CIS countries. At the same time, some market segments currently see a glut of supply, which makes efficient work in the priority markets a key element of sustainable business development.

Strategic priorities of Ilim Group include growth, operational excellence, and better quality of products and services. Growth is primarily associated with the ramp up of the new facilities in Bratsk (the Irkutsk Oblast) and Koryazhma (the Arkhangelsk Oblast) and development and implementation of new projects. Operational excellence embraces the implementation of the principles of manufacturing excellence, continuous improvement culture, and efficient world-class business processes. The third element of the strategy is aimed to build a world-class customer service and implement a quality improvement program. Russia and China remain the priority markets for the Company.

Ilim believes that the comprehensive development of the Russian pulp and paper industry requires joint efforts of the government and business community. Priority measures need to be taken to improve the business climate and investment appeal of the industry and of the Russian economy in general, and to enhance the availability of long-term financing for investment projects. The issues of importance for the pulp and paper industry include long-term timberland lease agreements, infrastructure development, implementation of the intensive forest management model, use of research and development potential in the industry, and support for green technologies.