A new pulp and paper mill will be built in Karelia, Russia after the Russian State Commission for the Development of the Arctic has approved an investment for Construction of the first new PPM plant built in Russia in over 40 years.

The new PPM will be one of the largest ones in the country and will be producing over 850,000 tons of pulp per year. It is hoped that the new complex will be completed in the next few years.

The construction of the factory is estimated to be worth 178 billion rubles and will be carried out by Segezha group, which is a part of the largest Russian conglomerate company, AFK Sistema. It is estimated, that out of the total sum for the new project, 100 billion rubles (USD 1.33 billion) will be investments. Investments of such a size are a five-year record figure for the Russian timber sector.