Ilim Group and Orgkhim Biochemical Holding join forces for an innovative biochemical production project

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Ms. Ksenia Sosnina, CEO of Ilim Group, and Mr. Nikolay Khodov, CEO of Orgkhim Biochemical Holding, have signed an agreement to set up Amber Stream LLC, a joint venture with 50/50 participation.

The new JV will produce a wide range of pine-chemical products with a high added value, including unique products completely new to Russian pine chemical industry.

Amber Stream will set up its first line in Koryazhma (Arkhangelsk Region) at Ilim’s Mill, group’s flagship manufacturing facility in terms of capacity and product mix. The project involves an upgrade of the pine chemicals plant to allow for value-added raw materials processing in order to manufacture new environmentally friendly biochemical products.

JV’s main product-line will include upgraded rosin esters, tall oil fatty acids and their derivatives. In addition, the JV will be the first in Russia to introduce manufacturing of sterols, a completely new to Russia array of products in high demand from pharmaceuticals and nutraceutical industries. According to JV management, licensing and start up is scheduled for Q4, 2017.

Alexander Emdin, Vice-President Finance of Ilim Group, has been elected as Chairman of the Board of JV Amber Stream LLC, and Aleksey Krylov, former Technical Director at Orgkhim, has been appointed as CEO of the new JV.

« Our company’s development strategy through 2030 involves a higher level of diversification and exploration of new opportunities. In addition to our traditional and still growing segments such as pulp and packaging materials, we are resolute to develop other promising opportunities, including biochemical. To pursue this goal, we have joined our efforts with the industry leader – Orgkhim Biochemical Holding. The synergy effect produced by the combined capacities of the largest forest industry company and a national-level expert in value-added innovative manufacturing of safe and environmentally friendly pine chemicals will make an important contribution towards boosting Russia’s bioeconomy, and help Ilim make another strategic step forward », - commented Ms. Ksenia Sosnina on the decision to set up a new JV.

« Amber Stream business seeks to capitalize on strengths of vertical integration, which will have a favorable impact on the product quality, delivery time precision, and customer service level. The JV will operate both on domestic and global markets. The consolidation of pine-chemicals assets and products from two partners will allow the JV to build up a tangible presence and force on the global pine-derived chemicals market », - said Mr. Nikolay Khodov.

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