Ilim Group starts up its 220,000 tonne/yr UWF PM 7 at Koryazhma in Russia

ST. PETERSBURG, Russia, March 4, 2013 (Press Release) - On the 3rd of March in Koryazhma, Arkhangelsk oblast, Ilim Group's new paper machine build as a part of Big Koryazhma investment project made paper for the first time.

During the coming weeks, Ilim Group's specialists, supported by experts from International Paper and representatives of equipment suppliers, will be working together to bring the machine up to full production, and help it meet all of the product quality parameters.

New high quality office and offset paper - will soon enter Russian market.

Company management is delighted with this development, and will be providing regular reports of progress to company communities and business partners.

Big Koryazhma is a project is an investment of $270 million, involving construction of a new paper machine, installation of an off-machine coater, installation of cut-size and folio sheeters, construction of precipitated calcium carbonate (PCC) plant and implementation of infrastructure projects. Construction of a new paper machine in Koryazhma started in summer of 2011 at the production site of Ilim Group Branch in Koryazhma. As a result of the project Russia's most advanced state-of-the-art paper machine has started operations and will produce more than 150,000 tons per year of office paper. In summer of 2013 the company will start producing 70,000 tons of coated paper per year to make Ilim Group Russia's first and only manufacturer of this product. The project was approved by Ilim Group's Board of Directors on June 30, 2010. The Ministry of Industry and Trade of the Russian Federation has given this project priority status.