Project started in 2001.
Project ended in 2003.

About the company: Volga (Balakhninsky PPP, Nizhniy Novgorod Region) is one of the largest newsprint paper producers with the Russian market share exceeding 30%. It sells to 60 states; the major share of export goes to Western Europe (the most famous newspapers in the EU are printed on the Volga-produced paper); its products are also being exported CIS countries, Eastern Europe, Asia and Africa.

Investment Appeal/Investment Concept of the Project: The asset has a large potential for growth in value. Growing internal newsprint paper market, substantial share of export.

PPP was in a technical default in respect of the loan repayment. Having acquired control of Volga, Alfa-Group restructured the loan and stabilized the financial situation. The new management conducted the upgrade of substantial part of the equipment, improved management efficiency, significantly reduced operating costs. Volga’s performance indicators now match the best in the industry. A large-scale new technology program was implemented to significantly improve the production environmental impact. Following the project completion Volga was sold to a Russian strategic investor.