Kokhavin paper mill will open new pulp production facilities

 

 The European Bank for Reconstruction and Development (EBRD) will provide a loan of up to 13.8 million euros to finance the construction of a new production and storage building of PJSC "Kokhavynska Paper Factory". The total cost of the project will be over 28 million euros.

with reference to Interfax-Ukraine.

The investment project envisages the construction of a plant for the production of paper products based on cellulose. The EBRD said in a statement that this would allow the company to enter the retail segment of higher quality napkins, double their production and increase operational efficiency. Capital expenditures will be used to purchase the necessary equipment, as well as the construction of an industrial production and storage shop.

"Kokhavynska Paper Factory" produces toilet paper, napkins and towels from recycled materials under the brands "Kokhavinka", "Merry Size", "Giant". The factory exports about 40% of its products to the Czech Republic, Romania, Belarus, Moldova, Hungary and the Netherlands. Earlier, the company's shareholders at their meeting approved a loan from the EBRD in the amount of up to 17 million euros to finance construction at the meeting. According to the decision of the meeting, the property of the factory, the market value of which exceeds 50% of the value of the assets, will be pledged on the loan.

In terms of toilet paper production, Kokhavynska Paper Factory ranks third in Ukraine after the Kyiv Cardboard and Paper Mill and VGP JSC, which use imported pulp as raw material for the production of base paper.