MEMPHIS, Tenn. (News release) -- International Paper announced its intention to explore strategic options, including the possible sale, of its 50% ownership interest in Ilim Group.

International Paper has no intention to seek suspension of operations or initiate any liquidation or bankruptcy proceedings with respect to Ilim Group.

International Paper first went into business in Russia in 1995, opening a small office in Moscow to explore opportunities. Three years later, it bought a paper mill in Svetogorsk (Leningrad region), near the border with Finland, which was 125 years old. The plant produces office and offset paper, cardboard and thermomechanical mass. It employs 1.5 thousand people.

In 2007, International Paper acquired 50% of the Ilim Group for a $650 million deal. Most of the other half of the Ilim Group is owned by entrepreneur Zakhar Smushkin, who is the group's chairman of the board. A key element of the joint venture was a long-term investment program, as a result of which International Paper invested about $3.2 billion in the development of the group's production in ten years after joining the Ilim Group.

From 1998 to 2018 International Paper's investments in capital projects at Svetogorsk Pulp and Paper Mill, fully owned by the International Paper in Russia, amounted to $752 million.

In January 2022, Sylvamo Corporation, part of International Paper, announced plans to invest an additional $230 million in the modernization of the Svetogorsk plant.

International Paper is a leading global supplier of renewable fiber-based products.

Ilim Group produces 75% of all Russian market pulp, 20% of cardboard and 10% of paper. The company's total annual production of pulp and paper products is over 3.6 million tons. It employs 17 thousand people.

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