Kama PPM plans to increase volume of sales in 2016
Ekaterina Kosova, General Manager of KAMA Pulp and Paper Mill (KAMA PPM), reported during the conference “Russian Pulp and Paper Industry – New Realities, New Opportunities” that the company will close the current year with a net profit. Now the company is focused on implementation of its global goal for the production of coated papers of the highest quality. By decision of the management, unprofitable enterprises will be closed, and the company will focus on construction of the marketing and implementation of import substitution strategy.
According to experts the import of types of coated paper and paperboard in Russia decreased by 30% to 610 000 tones compared with results in 2012-2013. The share of coated paper and paperboard for printing in import structure of coated types decreased from 56% in 2012 to 41% in 2015. The average import price decreased by 17% to $903 per ton in 2015 compared to the price in 2013. The average price of imported non-specific printed products decreased by 10% in comparison with the price level in 2013. At the same time the prices for paper and paperboard decreased by 17%.
In spite of the expected decline of advertising market, the main consumer of coated paper and paperboard for printing, the company still expects an increase in sales. Ekaterina Kosova has emphasized that the increase in sales to the domestic market is directly connected with the state strategy of import substitution. So due to the runoff of imported products on the Russian market, sales of the company are increased – in 2014 sales were 27 000 tones, in 2015 – 50 000 tones, and according to forecasts – 70 000 tones will be in 2016.