Ilim Group obtains permission by administration to install new PM at its Koryazhma branch in Russia

ST. PETERSBURG, Russia, March 25, 2011 (Press Release) - Ilim Group obtained permission to install new paper machine at Koryazhma branch of Ilim Group (Arkhangelsk oblast). This permission was given by Koryazhma administration and marks a new important stage of the company's investment project - actually constructing the mill to accommodate paper machine, building of additional units.

Not long ago Ilim Group also obtained consent from the Main State Expert Review Board to install new paper machine at Koryazhma branch of Ilim Group (Arkhangelsk oblast). The MSERB consent means that all process, technical and environmental solutions that are going to be used to implement the project fully comply with the Russian law.

The project envisions the installation of paper machine, cut-size sheeting system and precipitated carbonate plant, and construction of a number of other infrastructure-related projects. Annual capacity of the new paper machine will amount to 200,000 tons of product. The project approved by Ilim Group's Board of Directors in June 2010 provides Koryazhma mill to become a producer of totally new product for the company - high quality office paper and also folio sheets and roll paper made to order.

Concurrently a 70,000 tons per year off-machine paper coater and sheeting system is being implemented, such that Ilim at Koryashma will be the first and only producer in Russia of high quality coated commercial printing papers.