On the development of Russian pulp and paper industry. Part 2

The forecasted increase in demand paper and board in Russian domestic market-by the year 2010 is from 1.0 million tons ("pessimistic" scenario). 2.9 million tons ("optimistic" scenario). By conducting timely modernization off, existing mills, and increasing competitiveness of their products, Russian pulp and paper companies can reach the cor responding production volumes of Pulp (softwood bleached pulp and mechanical pulp) by the year 2010. The most difficult task would be to increase them supply of wood raw material to pulp mills by 15-30 % from the current level. This will require urgent construction of forest roads with hard cover, which will inevitably lead to increase in prices for wood raw materials and lower the competitiveness of Russian pulp and paper companies. Evaluation of the investment possibilities of Russian pulp and paper companies shows that almost all forecasted increase in pulp demand by the year 2010 in accordance to pessimistic scenario can be realized through the modernization of existing pulp mills in the near 3-4 years. It seems that construction of new pulp and paper mills in Russia will take place in the next decade, when the Russian companies get first results from modernization of existing mills.