Vladimir Krupchak: “State should support companies that have maximum social burden”

6 september 2021
Speaking about the business component of the new investment project of the Arkhangelsk PPM, Vladimir Krupchak made it clear that the “BREAKTHROUGH – 2027” directly correlates with the main directions of the state strategy aimed at high-level of wood processing, its integral use and import substitution products.

Arkhangelsk PPM continues working negotiations on the implementation of a new investment project “BREAKTHROUGH-2027” for the construction of a new sulfate board plant worth 105 billion rubles.

On September 2, 2021, the Minister of Natural Resources and Forestry of the Arkhangelsk region Igor Muraev visited the mill. During the visit, the Head of the regional department saw the existing capacities of the mill, the sites for the construction of new infrastructure facilities and the new selection and seed center. An important part of the meeting was the discussion of two-sided preparations for the implementation of the investment project “BREAKTHROUGH-2027”.

"Over the past few years, we have developed a constructive relationship with the management of the Arkhangelsk region - we see the government representatives are interested in the development of the mill, - said Dmitry Zyliov, CEO of APPM. The project “BREAKTHROUGH -2027” is a global project and its implementation will be problematic without state support: we have to be sure that our project will be provided with wood raw materials in order to make the plant and the associated infrastructure become real.

According to Igor Muraev, regional authorities can help to implement the investment project in several ways. One of options is a provision of forest raw material base. The regional management can help to establish cooperation with the neighboring regions as the APPM project will demand quite a large volume of wood resources. In addition, the Arkhangelsk region can help to work on the reforestation center. As separately noted, the Head of the regional ministry, this project deserves all possible assistance, for example, assistance in performing necessary scientific research.

As Nicolay Krotov, State Authorities Interaction Director of Arkhangelsk Pulp and Paper Mill, specified, the new selection and seed center of the mill will be one of the most modern in Russia. On an area of more than 10 hectares there will be a greenhouse and a laboratory facilities, where a new department of the Northern Arctic Federal University named after M.V. Lomonosov will be located. Nikolay Krotov reminded that after reaching full capacity, the center will produce up to 9 million seedlings with improved genetics per year. It is planned to reap up to three harvests per year. "The greenhouse facilities will allow automating all the procedures of planting material growing," noted State Authorities Interaction Director of APPM. - It is important that new high-paying jobs will be created here".

Nikolay Krotov also told that Arkhangelsk Pulp and Paper Mill together with the regional authorities and its general supplier of raw materials - Titan holding - started the process of adoption of the intensive model of forest management and forest regeneration. Promoting the principles of sustainable forest management, both companies aim to support long-term preservation of natural capital - the basis of their business. Long-term planning and a responsible approach to logging, based on careful forest analysis, ensure the sustainability of operations both today and in the future.

"We have seen a project to create a new, environmentally friendly production, with high added value and this means new jobs, high salaries, taxes to the budget, assistance in the social and economic development of the region," summarized Igor Muraev. – “BREAKTHROUGH-2027” is a unique project for the region and for Russia in general, because today Pomorye produces the most board in Russia. The commissioning of new capacities will allow increasing the production output and maintaining the leading position of the Arkhangelsk region.

As detailed by Dmitry Zyliov, CEO of Arkhangelsk Pulp and Paper Mill, the project "BREAKTHROUGH-2027" will create about 400 new jobs at the mill, the average monthly salary will be increased up to 100 thousand rubles per person. Tax payments to all levels budgets will increase to 4.3 billion rubles. The growth of investments is expected: socially responsible programs (600 million rubles), environmental protection measures (2.5 billion rubles), measures to improve labor conditions and safety (200 million rubles) and charity and sponsor support (130 million rubles).

The Investment Director of Pulp Mill Holding Vladimir Krupchak made it clear that the state should support, first of all, those companies, which provide tax revenues, make a living for people in the regions of companies’ presence and implement charitable projects. According to the results of 2020, Arkhangelsk PPM and Titan Group of Companies paid more than 5 billion rubles of taxes, invested 500 million rubles in social sector, invested more than 25 billion rubles in upgrade of production facilities, provided the charity support, including counter-COVID-19 measures for the amount over 100 million rubles.

According to Vladimir Krupchak, more than 15 thousand people work at these two leading enterprises of the region and they should be confident in their future. "We have always invested and will continue to invest in their future, which means the future of the Arkhangelsk region. This is our main duty," he noted.

Speaking about the business component of the new investment project of the Arkhangelsk PPM, Vladimir Krupchak made it clear that the “BREAKTHROUGH – 2027” directly correlates with the main directions of the state strategy aimed at high-level of wood processing, its integral use and import substitution products. APPM with a group of subsidiaries has been building its strategy in this direction for a number of years. Precisely because of the synergy of all business processes within the VIS, Arkhangelsk PPM achieved the best results by the volume of tax payments to the RF budget system per 1 m3 of harvested timber. “APPM is counting on a set of preferential measures from the state specifically for such enterprises as we, working under the slogan: “We harvest timber responsibly, restore on time, process comprehensively along the chain, invest on a large scale.” - said again the Investment Director of Pulp Mill Holding.