PAPCEL to rebuild equipment at Russian plant Karton i Upakovka Uchaly

LITOVEL, Czech Republic, Jan. 19, 2010 (Press Release) - On December 1^st, 2009 the Czech Export Bank approved financing of the project "Karton 2^nd stage". The project involves the reconstruction of a paper machine and stock preparation line in the Russian paper mill Karton i Upakovka Uchaly, a part of the holding Nikol-Pak. The amount of the 2^nd stage contract is 8,6 mio. EUR.

The subject of the whole contract, concluded in February 2008, is to start production of papers for plasterboards. The paper machine, 4.080 mm wide, originally producing single-layer liner and fluting, is going to produce duplex-cardboard after reconstruction. The final capacity of the paper machine will be increased to 120 kt/year at operating speed 500 m/min.

The deliveries of the 1^st stage included new headboxes for top and bottom wire parts, top and bottom „Cantilever" type wire parts, a new press part with a combined press and a Jumbo press, new machine drives, a steam-condensation system, control system and a new hydraulic reel with a reel spool magazine. The drying part was completed with a size press.

The total amount of the 1^st stage contract exceeded 18,15 mio. EUR. The concern ZAO Technonikol Uchaly was provided with a rewinder of 4.200 mm width and max. operating speed 1.800 m/min as well. The machine rewinds cardboard, substance 90 - 200 g/m², max. diameter of unwound reel 2.050 mm.

N.B. This press release has been updated from a previous version.