Arkhangelsk, Russia 02 May 2013 -- The Russian pulp and paper industry is experiencing a serious crisis, which is reflected by the recent announcement about the suspension of production of the Solombalsky Pulp and Paper Mill (SPPM), one of Russia’s largest pulp and paper mills, located in Arkhangelsk.
According to the company, the reason of suspension is financial and economic difficulties of the mill.
Due to the unfavorable market conditions and deterioration of equipment the was was forced to suspend its operations at the end of 2012. However it resumed its operations since the beginning of the current year and produced its first products. However due to ongoing economic difficulties the company’s management once again decided to stop its operations.
The situation is aggravated by the fact that the suspension may result in massive lay offs of the company’s workers.
According to some local media reports, about 1500 people may be fired in the coming days, however there was not official confirmation of these reports.
JSC "Solombalsky Pulp and Paper Mill" - the leading Russian enterprise for the production of unbleached softwood kraft pulp, and one of the world leaders in the production of this type of product. The plant is located in the industrial zone of the city of Arkhangelsk. The company's share in the global market unbleached kraft pulp is 10%, while Russian - about 50%.