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Today, Volga is about great prospects, about drive, about development

27 June 2023

Today, Volga is about great prospects, about drive, about development

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JSC Volga has summarized the results of its participation in the 27th International Packaging Industry Exhibition RosUpack, which took place in Moscow from 6 to 9 June this year. During the exhibition, over 100 major customers visited the Volga’s stand, and several dozen negotiations and meetings were held.

The Volga's Sales Department presented updated catalogues and product samples at the Company's stand in the Finished Packaging sector: interliner for flat inner layers of corrugated board; fluting (corrugated paper); technical packaging paper; and paper for notebook covers.

"We had a very tight schedule of meetings with our partners, because more often we solve all our issues remotely, but at the exhibition there is a great opportunity to shake hands and communicate in person. The exhibition, in which we take part annually, has again shown that it is an excellent platform for open dialogue, exchange of experience and development of partnership with participants of the packaging market", - said Dmitry Krivoruchenko, the Deputy General Director for Sales.

Dmitry also recorded a video interview for the industry portal UpackUnion in the RosUpack exhibition, in which he shared the Company's achievements, talked about the plans for the development of the product line and new export directions.

"We are working to diversify our products into different markets. JSC Volga is a commercial company, and our task is not to sell volumes, but to sell what we produce with maximum profitability for the company. We are going through the markets very dynamically, looking for new opportunities," said Dmitry Krivoruchenko. - There are two trends now. The first is newsprint, books. The reduction in consumption of these products, after all the restrictions, is about 10-11% a year. The second is packaging: we have started to order more often on marketplaces, and all goods come in packaging, which is paper and cardboard. Thus, newspapers are gradually leaving, while the need for corrugated cardboard is growing quite seriously. If we assess the markets, next year, let us take as the example of China, the fastest growing economy, the consumption of newsprint will be 1 million tons a year, and cardboard packaging will be around 70 million tons a year. If we look at the Russian market, by 2025 consumption will be around 200,000 tons of newsprint and 3.2 million tons of paperboard and paper packaging per year, respectively. We work with newsprint consumers, but strategically we realize that we need to develop more expertise in packaging.

In addition, our paper machines are getting into the trend that is leading to a reduction in the weight of packaging paper. Paper is becoming thinner and lighter for corrugated packaging production. We estimate that by 2025 China will have an uncovered demand for 1.2 million tons of fluting per year, 900,000 tons of testliner with surface gluing, and 120,000 tons of testliner without surface gluing. Thus, China alone will have a demand of about 2 - 2.2 million tons in 2025, taking into account the capacities to be commissioned.

We go where there are uncovered consumption volumes and come in with our product. If necessary, our current pool of paper machines allows us to change the specifications of the products we produce to meet the needs of the market or customers within a wide range. We are quite flexible in this respect, and we are on trend. Therefore, today Volga is about drive, about development, about great prospects."

 

JSC Volga Press Service