Project start: 2002
Project end: 2005

About the Company:
Kama Pulp and Paper Plant (Krasnokamsk, Perm Region) produces newsprint and other products. It is one of the ten biggest companies in the industry. It has a seven per cent newsprint market share in the country and production is also exported into CIS countries, Eastern Europe, Asia and Africa.

Investment Appeal / Investment Idea of the Project:
Possibility of a significant improvement in the Company's performance.
Growing home newsprint market, big share of exported production.

Role of the Investor:
Alfa-Group obtained Kama shares through the privatization tender of 2002. The plant was the last non-privatized enterprise in the industry; it had lost its market position and was in crisis. A crisis program was created for Kama and experienced managers were sent to the plant. During the project implementation, all major performance indicators significantly improved and the PPP reached operational breakeven point. New sales and staff motivation schemes were introduced. Sales in CIS countries expanded and Kama started developing other foreign markets. The program for complete renovation of the plant was developed. Its objectives include re-equipment of the technical base, improvement in the quality of all products up to world standard, creation of a self-sufficient timber raw material base and development of environmentally friendly technology.

Divestment:
In 2005 the Plant was sold to a strategic investor.