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One of the leading manufacturers of cardboard and paper products in Europe with over 40-year history, Kyiv Cardboard and Paper Mill continues to modernize its production processes even amid the war

Obukhiv based company follows the strategic development plan defined by its owner, the Austrian Pulp Mill Holding group headed by Dr. Heinz Zinner.

Facilities of Kyiv Cardboard and Paper Mill allow to consistently produce about 322 thousand tons of products per year. However, in today`s competitive world, standing still means losing ground. That is why the Austrian beneficiary focuses on continuous modernization of its equipment. For more than two decades of cooperation, the Austrian partner has allocated more than €350 million for this purpose, including €10 million in 2024, and this amount is planned to double in 2025.

Modernization of equipment is key factor for the competitiveness of KCPM

One of the largest investment projects was the upgrade of the drying part of the paper machine. With the support of the owner, Dr. Heinz Zinner, Kyiv Cardboard and Paper Mill signed an agreement with the Italian brand Toscotec. The new steel Yankee cylinder will replace the outdated cast iron cylinder, minimizing the mill`s energy consumption.

The Yankee cylinder is the heart of a huge key mechanism at Kyiv Cardboard and Paper Mill.

The cost of the ambitious program, which involves the transportation of a large roll and components from Italy, as well as the installation of a replacement Yankee cylinder and a high-speed dryer hood, is about €7 million. The project is expected to be fully completed by the end of 2025.

The owner`s focus is on the environment: KCPM is on the way towards zero-waste manufacturing

In 2024, Kyiv Cardboard and Paper Mill launched another ambitious project – the purchase of a modern shredder for processing jute, which makes it possible to:

• efficiently separate metal;
• produce SRF fuel.

With the support of Dr. Heinz Zinner, the amount of € 710.000 was invested for this purpose. After the installation of equipment, the Obukhiv mill has been already processing over 200 tons of jute per month, fully covering the needs of its own manufacturing. In the near future, the processing volumes are planned to increase to 500 tons per month, which will allow the mill to move to landfill utilization of accumulated industrial waste.

A modern shredder converts paper residues into fuel.

The war brings its own changes to the plans: the mill has to rely solely on own resources and the help of the owner

The mill, which operates on a closed-cycle basis, has a complex and capital-intensive production structure. Given the security risks, access to external financing for Kyiv CPM remains limited, while most competitors rely on cheap loans with long terms of repayment.

The company officials emphasize that growth and restoration of positions in the international arena are impossible without large-scale investments. Therefore, despite the martial law and difficulties in accessing capital markets, the manufacturer continues to implement multimillion-dollar investment programs on its own and with the help of the owner.

The position of the Austrian investor is supported and understood at the highest diplomatic level

On January 15, during a working meeting with the Ambassador of Austria in Ukraine, Dr. Arad Benkö, Dr. Heinz Zinner defined new directions for the mill`s development and the challenges faced by businesses amid the war in Ukraine.

Based on the material of mind.ua.

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