In 2021, Ilim Group increases corrugated board output by 9%

In 2021, Ilim Group increases corrugated board output by 9%

In 2021, the output of Ilim Group corrugated box plants reached a record-high level of 282 million square meters (131 thousand tons). The Company has increased the output of corrugated board by 9% vs. 2020. Over the last three years, Ilim’s corrugated box business has been demonstrating high growth rates of about 10% per year.

In 2021, EBIDTA of Ilim Group corrugated box plants totaled USD 16.3M, which is 2.2 times higher vs. 2020, driven by prices for corrugated products as well as finished products output supported by reduction of losses.

“The past year saw the most successful performance of Ilim’s corrugated box plants of all time”, said Vladimir Shoshin, Director, Packaging Sales, Ilim Group. “When preparing our plans for 2021, we understood that competition pressure in the corrugated materials market will grow as well as feedstock prices. Expansion of the Company’s customer base in the end of 2020 followed by an increase in the number of orders allowed our box plants to increase their production volumes already in the beginning of 2021”.

Corrugated box plants in Dmitrov and Kommunar are a part of Ilim Group’s full-cycle production process. In 2021, Ilim’s box plants consumed 71% of own feedstock. Own feedstock enables the Company to ensure full control over production process and avoid disruption in supplies.

“Today, the key drivers of the corrugated materials market development include active development of e-commerce, global “going green” trends as well as conscious consumption”, emphasized Pavel Alekseev, Operations Director, Packaging Business, Ilim Group. According to Ilim Group estimates, the demand for corrugated products will grow by 4-5% in 2022.

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