Syktyvkar LPK SLPK

JSC Syktyvkar LPK is an enterprise of the full production cycle from raw material procurement to the shipment of finished products to the consumer.

History

2024

Syktyvkar LPK bought one of the largest manufacturers of sanitary and hygienic products in Russia Syktyvkar Tissyu Group

On November 1, 2024, it became known that Syktyvkar LPK acquired Syktyvkar Tissyu Group (STG OJSC), one of the largest manufacturers of sanitary and hygienic products in Russia. There is no information on the value of the transaction as of the specified date. Read more here.

The capacity of the plant is about 1.3 million tons of finished products per year

According to information for April 2024, the Syktyvkar LPK plant has three paper-making, one cardboard-making and one drying machines, as well as wood-preparatory production, a pulp mill, a thermal power plant and a complex of treatment facilities. About 4,500 people work here.

The capacity of the plant is about 1.3 million tons of finished products, which are sold both in Russia and abroad: office, offset, newsprint, packaging and consumer cardboard, dry commercial pulp.

2023

Renaming

According to the Unified State Register of Legal Entities, from November 3, 2023, the name of Mondi Syktyvkar LPK JSC was changed to Syktyvkar LPK JSC.

Sale of the last asset in Russia for 80 billion rubles

On September 17, 2023, the Austrian group of packaging and paper companies Mondi plc announced the conclusion of an agreement on the sale of its largest and last asset in Russia - Mondi Syktyvkar JSC. The transaction amount is 80 billion rubles.

The buyer is Cesar Invest LLC, a subsidiary of the Moscow development company Sezar Group.

Under the terms of the contract, Mondi will receive funds from the sale of the asset in six monthly tranches. The amount of the first four payments will be 13.5 billion rubles each, while the first transaction will be made by the end of September 2023, the remaining three - by the end of December of this year. After that, the ownership of Mondi Syktyvkar will go to Cesar Invest, and Mondi will formally complete its exit from Russia. The remaining 26 billion rubles will be paid in two equal parts after the closing of the transaction.

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"Syktyvkar LPK"

The company "Mondi Syktyvkar" specializes in the production of pulp, packaging materials and high-grade paper. The plant, located in the Komi Republic, employs approximately 4,500 employees.

Mondi announced the decision to sell Russian business in May 2022 - due to the current geopolitical situation. Owned by Syktyvkar LPK, it is one of the largest producers of paper and cardboard in Russia with a production volume of about 1.2 million tons of products per year. In August 2022, the Austrian group announced that it had entered into an agreement with Augment to sell the enterprise (which produces, among other things, Snegurochka office paper) for 95 billion rubles. In May 2023, the agreement expired, and the parties were never able to obtain permission for the deal from the government commission for control over foreign investment by this time. As a result, Mondi pulled out of the deal and started looking for a new buyer.^[1]

2022

The authorities did not agree on the sale of the manufacturer of office paper "Snow Maiden" to billionaire Kharitonin

As it became known on December 19, 2022, the deal to sell the main asset of the Austrian Mondi group in Russia - Mondi Syktyvkar LPK (Mondi SLPK) in Komi - Augment Investments Limited, owned by co-owner of Pharmstandard Viktor Kharitonin, did not take place.

The Russian authorities did not agree on a deal, a possible reason is too high a price: Mondi SLPK in Syktyvkar sold Kharitonin for 95 billion rubles (about 1.5 billion euros), RBC writes.

The sale of the manufacturer of office paper "Snow Maiden" to billionaire Kharitonin was not agreed by the authorities

The information that the deal announced in August 2022 was not agreed upon by the Russian authorities was confirmed to the publication by a source in the Russian government, one of the applicants for the asset and a top manager of one of the largest Russian timber companies.

According to one version, the Federal Antimonopoly Service of Russia did not give its approval for the deal, according to another, the sale of the asset was rejected by the government commission. The price proposed by Kharitonin for Syktyvkar LPK turned out to be significantly higher than that of other applicants, the publication says.

The head of the Ministry of Finance Anton Siluanov in the summer of 2022 at the congress of the Russian Union of Industrialists and Entrepreneurs noted that foreign business, when leaving the Russian Federation, should experience "certain costs to exit this asset": the discount should be at least 50% of the last official estimate, and the transaction amount should not exceed 1-3 EBITDA.

Mondi confirmed that by December 19, 2022, the deal "did not receive the approval of the government's subcommittee of the Russian Federation on foreign investment control and the usual antitrust permits." Previously, the deal was planned to be closed by the end of 2022.

Syktyvkar LPK produces annually more than 1.1 million tons of office, offset and newsprint, container cardboard and dry commercial pulp. The most famous brand of the company is Snow Maiden paper^[2]

Announcement of the sale of the plant to Augment Investments Limited

In August 2022, the Austrian group Mondi, which produces paper under the Snegurochka brand, announced the sale of Russian assets to Augment Investments Limited, co-owner of Pharmstandart, billionaire Viktor Kharitonin. The value of the transaction is 1.5 billion euros, its perimeter includes Mondi Syktyvkar LPK (the largest pulp and paper producer in Russia, which produces Snegurochka office paper) together with two subsidiaries.

Mondi notes that the completion of the deal will require approval from the government's foreign investment control commission and antitrust approvals. The parties expect to close it by the end of 2022. However, due to the "changing political and regulatory environment" in which the deal is planned, "there can be no certainty" that it will end, Mondi noted.

Snegurochka sold its largest Russian enterprise

The deal will not include cash balances in the accounts of companies included in its perimeter in the amount of 16 billion rubles (about €255 million). They will be listed by Mondi as dividends before the deal is completed, subject to the approval of the Russian Ministry of Finance. Money from the sale of assets and dividends will subsequently be distributed to Mondi shareholders.

In March 2022, Mondi's Russian units faced restrictions on "imports of chemicals, spare parts and other critical materials" and said they were considering different options for continuing to work in Russia. In May 2022, the company announced that it would sell all Russian assets.

By the beginning of 202 2year, the net worth of all Russian Mondi enterprises amounted to 687 million euros. The company had three processing plants in Russia, which employed 5,300 employees. They produced products mainly to the domestic market.^[3]

2015: As part of Mondi Uncoated Fine Paper

As of August 2015, Mondi SLPK JSC was part of the Mondi Uncoated Fine Paper division. Syktyvkar plant specializes in the production of office and offset papers, also produces newspaper paper, cardboard for flat layers of corrugated cardboard "top liner" and commercial pulp "KOMICELL." The most famous brand of the company is office paper "Snow Maiden."

2010: Productivity - more than 830 thousand tons of finished products per year

Mondi Syktyvkar LPK is one of the largest producers of pulp and paper products in Russia.

As of September 2010, the company had a cardboard and three paper machines. The total productivity of the plant was more than 830 thousand tons of finished products per year. The plant has its own wood preparation plant, a pulp mill that produces about 550 thousand tons of pulp per year, a thermal power plant and a complex of treatment facilities.

Logo in 2010

Syktyvkar LPK controlled more than 11 logging companies of the Komi Republic, which provide wood raw materials to the plant.

About 10 thousand people worked in the structure of enterprises of Mondi Syktyvkar LPK (as of September 2010). Given indirect employment, this figure roughly doubles.

The Syktyvkar plant provided more than 40% of the office and offset paper market in Russia and the CIS, produced newsprint, cardboard for flat layers of corrugated cardboard "top liner" and "kraft liner."

Notes