I. History
Ilim Pulp Enterprise (IPE) is a joint venture between Russia and Switzerland, Russian party is responsible for all questions concerning production and marketing, Switzerland party is responsible for financing sales and production. IPE was established in 1992 as a company specializing in sales of pulp and paper products produced by Russian Mills (Kotlas and Ust Ilimsk). All the top management of IPE graduated from P&P institutes of Russia and have been working on Russian P&P Mills.

II. Production
As soon as privatization process has started in Russia IPE has started to purchase shares of Russian P&P Mills. Now IPE owns majority stakes in the following P&P Mills of Russia:
1) St.Petersburg Board Mill
Production:
200 000 mt per year of duplex board of various grades
2) Kotlas Pulp & Paper Mill
Production:
200 000 mt per year of bleached hardwood birtch pulp
300 000 mt per year of virgin kraftliner
100 000 mt per year of dissolving softwood pulp

150 000 mt per year of sack kraft paper
290 000 000 of sacks per year

112 000 mt per year of offset and wall papers
3) Bratsk Pulp & Paper Mill
150 000 mt per year of virgin kraftliner
180 000 mt per year of bleached hardwood kraft pulp
180 000 mt per year of bleached softwood kraft pulp
6 000 mt per year of unbleached pulp
100 000 m3 per year of plywood

IPE also owns a paper mill in Czech Republick Plesensca Papirna, producing 25 000 mt per year of various papers.
IPE purchased Kotlas and Bratsk in January 1997 and within this year IPE Group has produced and sold 750 000 mt of pulp & paper for 1998 we are planning to enlarge our production and sales for more than 1 500 000 mt of pulp & paper.

III. Marketing tonnage
Geography of our sales looks like as follows:
1) Kotlas - 50 % to Eastern Europe, 20 % to Western Europe, 20 % to Mediterranean markets and 10 % to domestic market
2) St.Petersburg Board Mill - 100 % to domestic market
3) Bratsk - 50 % to Asia Pacific Markets, 20 % - to Eastern Europe, 10 % - to domestic market, 10 % - to Mediterranean markets, 10 % - to Western Europe.

Best regards,