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Business news, 05.11.2003 13:15

"Segezhsky Paper" wins bank credit of euro 40 million

Segezhsky Pulp and Paper Combine The Russian Savings Bank plans to provide the Segezhsky Pulp and Paper Combine (Karelia Republic) with a credit of Euro 40.4 million for seven years. The credit will be used to upgrade papermaking machinery. The result is expected to be a doubling of productive capacity and an upgrading to world standards of the paper bags produced by the combine. This will make it possible for the combine to compete effectively in the European market and to meet the rising domestic demand for high-quality bagging and kraft paper. The bank and combine signed an agreement in May that looked towards the bank's investing Euro 410 million over seven years for modernizing and increasing the productive capacity of the combine.

The shareholder-owned, commercial Russian Savings Bank registered on June 20, 1991. The founding organization and principal stockholder is the Central Bank of the Russian Federation (more than 60% of the charter capital). There are some 230,000 other actual and corporate stockholders. Net profit for the Russian Savings Bank came to USD 1.2 billion in 2002.

Segezhsky Pulp and Paper Combine, founded in 1939, is the largest Russian producer of kraft paper and paper bags. It is the second largest producer of kraft paper in the world.

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