Ilim Group Recorded Boosted Growth in Corrugated Box Business
The box plants consumed 71% of own feedstock.
SEATTLE (Scrap Monster): The Ilim Group recorded high growth rate in its corrugated box business for the third consecutive year in 2021. The output from the company’s corrugated box plants totalled 131,000 tons during the previous year, higher by 9%, compared with the output in 2020.
According to company press release, the EBITDA of corrugated box plants in Dmitrov, Moscow and Kommunar, Leningrad totalled $16.3 million in 2021, mainly driven by higher prices for corrugated products as well as finished products. The EBITDA more than doubled when matched with the prior year.
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The box plants consumed 71% of own feedstock. The increased consumption of own feedstock has helped the company to have total control over production process, thereby avoiding any supply disruption. The expansion of customer base towards end-2020, coupled with substantial surge in the number of orders resulted in increased production volumes in the beginning of 2021.
Commenting on the future outlook, Pavel Alekseev, Operations Director-Packaging Business, Ilim Group noted that the demand for corrugated products is expected to grow by 4-5% during the current year.