Ilim Group expands its footprint in the southwest of the People’s Republic of China

The Company increases its deliveries to the southwestern regions of China, which has been its prioritized area. By 2025, the share of Ilim Group’s board supplies to the southwest of the People’s Republic of China will have increased three-fold from 5% to 16%, which is another 100 thousand tons of the finished products.

Stepped-up deliveries will make the Company a key player on the pulp and paper market in the south-western China. The supply volumes will be boosted partly owing to the products from Ilim Group’s new pulp and paper mill (the KLB Mill) in Ust-Ilimsk. The production capacity will amount to 600,000 tons of KLB per year, and today Ilim keeps on implementing its go-to-market strategy.

Pursuing the strategy to introduce the KLB mill products to the market, Ilim Group in collaboration with Chengdu Peibaobo Paper Co. held a conference for existing and potential partners in Kunming, Yunnan province. Over 40 persons partook in the event, including buyers and consumers of the board to be used for packaging of agricultural produce, flowers, tobacco products, and beverages. Yunnan Packaging Association and logistics companies were also among the participants of the event.

Chengdu Peibaobo Paper Co. is one of Ilim Group’s partners in the People’s Republic of China. The company is a large manufacturer of packaging and a service operator in China. In liaison with the Chinese company, Ilim also plans to enter the market of Laos and supply packaging materials to the FMCG market.

“We will deepen our cooperation with Chengdu Peibaobo Paper Co., seeking to render customized services to the consumers in the southwest of China, improve logistical itineraries and enhance efficiency under the Belt and Road initiative”, comments Alexander Lykhin, Ilim Group’s Vice President and Head of the representative office of JSC Ilim Group in Asia. “Apart from this, we are now working on deliveries to the Southeast Asia through the China-Laos railway route”.

“Potential area of cooperation between Chengdu Peibaobo Paper Co. and Ilim Group is to perform centralized purchasing, gain a competitive price and cut down logistics expenses through joined supply volumes”, said Wang Xiaoju, President of Chengdu Peibaobo Paper Co.