Karelia, Russia 13 January 2015 -- Russia's Segezha Pulp and Paper Mill aims to reach paper sacks capacities of 90 million by 2017. The company will also inrease sack kraft paper capacities by 110,000 t.

Russian producer of sack kraft paper and paper sacks Segezha Pulp and Paper Mill (SPPM) plans to increase its capacity, according to Nikolay Y. Naumov, who became SPPM's director general in mid-September 2014.

The investment project by the Sistema holding company, which owns 100% of the shares in SPPM through its subsidiary LLC LesInvest, would have a total volume of around RUB12bn (approximately €160m), announced the government of the Russian Republic of Karelia.

Segezha Packaging will reportedly be increasing its annual production capacity to 90 million paper sacks by 2017 with an investment of RUB500m (€6.7m). Furthermore, RUB1.2bn (€16m) is to be allocated to investments in wood processing. The main project, however, was said to be the upgrading of SPPM's two paper machines.

According to Naumov, the company intends to raise its capacity for unbleached sack kraft paper at the site to 360,000 tpy. Currently, production can reach 250,000 tpy. In addition to the 110,000 tpy capacity expansion, the project aims to improve quality and lower production costs.