Russian newsprint maker Solikamskbumprom seeks 20bn ruble Chinese rescue investment
Solikamskbumprom, one of Russia's largest newsprint producers, is in talks with Chinese company Yun Chou over 20 billion rubles of investment to be phased over several years, as more than 10 creditors seek to have the mill declared insolvent in a Perm regional court. The mill owes creditors over 15 billion rubles, is running only one of its paper machines, and has proposed a court-approved truce after creditors said it had announced a new investor months ago without producing a deal.
Why this mattersA Chinese rescue of a major Russian newsprint mill would be one of the clearest signs yet of Chinese capital stepping into gaps left by Western sanctions in Russian papermaking.
- Solikamskbumprom owes creditors more than 15 billion rubles, Kommersant reported.
- The mill and Yun Chou are negotiating 20 billion rubles in investment spread across several years.
- More than 10 creditors have asked a Perm court to declare the company insolvent.
- Only one of the mill's paper machines is currently running and it has barely produced pulp for months.
- Russia's annual newsprint demand of under 150,000 tonnes could be supplied eight times over by its mills, per the Centre for Systemic Solutions.
- Freight rates on some of the mill's export routes rose fourfold to eightfold last year.
Sources
woodcentral.com.au