Russian companies increase paper production

Russia's production of cellulose, paper and cardboard increased by 30.7% in 1999 (4.2 M tonnes of cellulose; ca 4 M tonnes of paper; and 1.53 M tonnes of cardboard). Turnover arnpunted to $800-850 M. Higher production is attributed to favourable prices for Russian products on the global market and the effects of the August crisis of 1998. Russia's exports of forestry products exceeded $3.5 bn (+17%) in 1999. The cellulose and paper factory Kotlassky in Arkhangelsk region increased production by to 701,000 tonnes of cellulose (+30%) and 194,000 tonnes of paper (+27.5%). The cellulose and paper factory Arkhangelsk produced 662,300 tonnes of cellulose (+16.5%) and the paper group Syktyvkar in Komi Republic produced 382,000 tonnes (-27.5%) of cellulose. Production by Russian company Ust-Illimsk in Irkutsk Region increased by 250% to 467,600 tonnes of cellulose in 1999. According to information by Russia's Economic Ministry, leading domestic paper manufacturers are: Volga (cellulose and paper factory Balakhinsky in Nizhny Novgorod Region) with a production capacity of 527,200 tonnes (+6.2%); Kondopoga (Karelien) with 520,500 tonnes (+22.6%); and Syktyvkar with 436,000 tonnes (+26.2%). Good business in the cellulose and paper industry were attributed to a 9% increase in wood felling and a 50% reduction in transport tax for exported forestry products.