By Irina Van den Neste, Associate Editor, PPI This Week, RISI
A spokesman said that following the startup of a closed-loop water purification system at the plant in September, the firm terminated the production of bleached pulp at the facility.
"The technology of bleached pulp production involves chloride-bearing components, which is not compatible with the usage of a closed-loop water purification system," he explained. "The production of bleached pulp is the most cost-efficient for the mill. And its termination has led to a financial crisis at the plant. On October 2, we halted all other operations at the mill," the spokesman added.
The firm is currently in talks with the state authorities on the possibility to return to the previous production cycle, without the closed-loop water purification system.
The startup of this system was intended to minimize the pollution of Lake Baikal, for which the firm is facing several court charges initiated by the Russian environmental watchdog, Rosprirodnadzor, since November 2007.
Although production has stopped, the company will continue to operate the mill's combined heat and power plant, which supplies the city of Baikalsk with heating and hot water, until December 15. The firm hopes that the local authorities will take over the responsibility for this afterwards.
The Baikalskiy Pulp and Paper Mill can produce some 200,000 tonnes/yr of bleached and unbleached softwood kraft pulp and 12,000 tonnes/yr of sack kraft paper and kraftliner.
The plant is controlled by Continental Management, which owns 51% of its shares. The remaining 49% belongs to the Russian state property committee, Rosimushchestvo.
