International Paper in Russia
International Paper began its activity in Russia in 1998 with the acquisition of the Svetogorsk mill, located on the Karelian Isthmus. Since then, International Paper has invested over $600 million in mill upgrading projects, resulting in an enlarged range of products as well as increasing levels of productivity and quality.
International Paper is one of the leaders in the Russian cut-size market with its well-known office paper brands Ballet® and Svetocopy®, manufactured at the Svetogorsk mill. The mill is also an important producer of liquid packaging board.
In October 2007, International Paper formed a joint venture with Ilim Holding: Ilim Group, the largest foreign-domestic alliance in the Russian forest sector. A key element of the joint venture strategy is a long-term investment program in which the joint venture will finance and invest approximately $2 billion in Ilim Group's three mills over approximately five years. This unprecedented investment in the Russian pulp and paper industry will be used to upgrade equipment, increase production capacity, and allow for producing new high-value uncoated paper, pulp and corrugated packaging products. To learn more about Ilim Group, visit http://www.ilimgroup.com.
In November 2008, International Paper created a new organisational structure for the company's business in Russia to better position and align its commercial interests there for the future. Within this new structure, led by International Paper Russia President Ksenia Sosnina, all of the company’s activities in Russia are now combined under one umbrella. Mrs. Sosnina also represents International Paper on the Board of Directors of Ilim Group. In February 2009, in support of the new organisational structure, the company's name changed from OAO Svetogorsk to ZAO International Paper.