Mondi hosts trade journalists at its modernised mill in Syktyvkar, Russia

Mondi is hosting the first media visit of the Mondi Skytyvkar mill for European journalists since the completition of the STEP project on September 29, 2010. The EUR 545 million expansion and modernisation of the Syktyvkar mill in Russia began on July 1, 2008 and is the largest mill modernisation project in the history of the Russian pulp and paper industry.

The project serves as a prime example of Mondi’s strategic approach to invest in high-quality assets that will yield increased benefits forcustomers and allow Mondi to better service the Russian domestic market as well as export markets.

The main objectives of the modernisation projectwere to upgrade to state-of-the-art technology, enhance mill safety, employ additional environmental measures and increase the quality and competitiveness of Mondi’s products.

Peter Machacek, CEO Uncoated Fine Paper & Containerboard at Mondi Europe & International, commented on the project’s success: “We are proud that our modernised Syktyvkar mill not only boosts our leading market position in this key region but is an extremely well-invested and highly cost-effective asset that reflects Russia’s growing economic strength and diversification into value added products.”

Some of the most impressive upgrades are the installation of a new lime kiln with daily burnt lime production of up to 700 tonnes, a new recovery boiler that burns 3,560 tonnes of dry solids per day and a 100MW turbo generator. The mill has also been fitted with modern equipment of the highest possible environmental standards that will reduce daily water consumption by 40% to 206,000m³ and trap 99.9% of dust and odorous gases arising from the burning process.

“The investment is a notable industry achievement,” says Gerhard Kornfeld, Managing Director of Mondi Syktyvkar. “STEP has modernised and increased production in nearly all areas of the production chain. For example, the installation of modern equipment for the processes of chip reception, production and transportation has dramatically increased the mill output. And most importantly, themill is now fully self-sufficient in pulp, which is a major cost advantage.”

The STEP project also proved to be a model of industrial safety. Its safety record is the best ever achieved in the history of the Russian paper industry. At the peak of the project, around 2,000 employees were involved. In total, about 300 partners and mainly local contractors worked on the project.

Notes to Editors

STEP at a glance:

• The new mill facilities spans 48,000 square meters – an area equivalent to the size of seven football fields.
• Construction of a new wood yard to handle 4 million m³ of wood per year
• Rebuild of softwood and hardwood pulp production lines
• Rebuild of White Liquor plant, construction of a new lime kiln with the capacity of 700 tonnes of burnt lime per day
• Construction of a new soda recovery boiler. Capacity: 3560 tonnes of dry substances per day
• Installation of a new turbo-generator with the capacity of 100MW
• New evaporation plant with the capacity of 550 tonnes of water per hour and two new cooling towers
• Rebuild of PM 14 (office paper production) and PM 21 (board production)

Environmental modernisation

• A new evaporation train with the capacity to hold 550 tonnes of evaporated water per hour has contributed to reductions in water consumption and two cooling towers permit water re-use. In total, the new equipment has resulted in a decrease in water usage from the Vychegda River from 349,000 m³ per day down to 206,000 m³.
• The new lime kiln traps 99.9% of the dust arising from the burning process
• The new soda recovery boiler replaced the three older boilers and any odorous gases from the burning process are now collected and burnt in the recovery boiler.
• Together with this recovery boiler, a new 100 MW turbo generator was constructed from which the Republic of Komi receives additional green energy, produced from biomass.

About Mondi

Mondi is an international paper and packaging Group, with production operations across 31 countries and revenues of €6.2 billion in 2010. The Group’s key operations are located in Central Europe, Russia and South Africa and as at the end of 2010, Mondi employed 29,000 people.

Mondi is fully integrated across the paper and packaging process, from the growing of wood and the manufacture of pulp and paper (including recycled paper), to the conversion of packaging papers into corrugated packaging, industrial bags and coatings.

The Group is principally involved in the manufacture of packaging paper, converted packaging products and uncoated fine paper (UFP).

Mondi has a dual listed company structure, with a primary listing on the JSE Limited for Mondi Limited under the ticker code MND and a premium listing on the London Stock Exchange for Mondi plc, under the ticker code MNDI. The Group has been recognised for its sustainability through its inclusion in the FTSE4Good UK, Europe and Global indices in 2008, 2009 and 2010 and the JSE’s Socially Responsible Investment (SRI) Index in 2007, 2008, 2009 and 2010.

Last change: 16/06/2011