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Kyiv Cardboard and Paper Mill is one of the largest enterprises in Kyivska oblast: it employs 2,500 people and the amount of taxes paid to the budgets of all levels exceeds billions. Delo.ua interviewed Nina Kolodii, CFO of Kyiv CPM, to find out the company          `s approach to achieve such high financial performance during the great war, as well as the social and charitable initiatives it implements and how it takes care of its staff.

How has the great war affected the company`s work?

– Since the beginning of the full-scale invasion, Kyiv CPM has not shut down even for a minute. This is a joint achievement of the mill`s team and the Austrian owner of Pulp Mill Holding, with director and ultimate beneficiary Dr. Heinz Zinner. The shutdown of production causes a collapse in many industrial sectors of the country. As a critical infrastructure company, we just couldn`t sit back and do nothing: we continued to produce, pay salaries and taxes to our employees.

Production of corrugated packaging, photo by Kyiv Cardboard and Paper Mill

Of course, we cannot boast of financial results for 2022, but KCPM has withstood the most difficult period and is already showing much better results.

What has affected the company the most?

– Many buyers of Kyiv CPM products have left the country, which has had a significant impact on sales of hygiene paper products. Demand also declined because our customers stopped or reduced production. This also affected production volumes. As of today, our corrugated packaging production lines have already reached pre-war capacity, and our paper machines are operating at 60-80% of capacity.

Additionally, along with many other large Ukrainian businesses, KCPM suffered from logistical difficulties: we had to stop working with many transport partners. The increase in shipping costs affected the cost of production, and we had to work hard to maintain market prices and continue to operate profitably.

The key problem is limited access to the capital market. Cheap long-term loans are essential for investment and development. Kyiv Cardboard and Paper Mill is a closed-cycle enterprise that processes recycled materials into finished products and has a complex and capital-intensive production structure. Development and growth are impossible without external borrowings. That’s why the owner, Dr Heinz Zinner, approved a multi-million-dollar modernization program even during the war. In 2024, we invested €10 million from our own funds in the modernization of production. And since 2022, an Austrian investor has allocated about EUR 15 million to modernize production facilities.

The investments also include environmental projects: KСPM is gradually abandoning the use of landfills for waste disposal and has started recycling in 2024. The company sells leftover film and plastic for use as fuel, as well as waste from cardboard and paper machines for the construction industry.

Sheet and small-format cardboard production unit, – photo by KCPM

Have you managed to re-establish contacts with foreign customers that you lost due to logistical problems at the beginning of the war?

– Yes! It was a lot of work to rebuild the logistics chains. As of today, Kyiv CPM has renewed cooperation with many foreign clients, including Poland and the Baltic States, Georgia, and even Mongolia. The changes allowed us to increase the share of foreign sales, and we are looking forward to 2025.

How did the mill overcome the staff shortage problem?

– The lack of qualified staff is a huge problem for all Ukrainian enterprises. At Kyiv Cardboard and Paper Mill, we are actively working with human resources and doing everything we can to minimize this problem: we invite new employees from other regions, cooperate with higher education institutions, provide training and retraining, develop motivational programs, implement referral recruitment, etc. Most importantly, Kyiv CPM and its Austrian owner maintain a competitive salary level: this year, we have increased financial incentives twice.

What amount of taxes has Kyiv Cardboard and Paper Mill paid to the budget during the years of the full-scale invasion?

– In 2022, Kyiv Cardboard and Paper Mill paid about one billion UAH. In 2023, we have already paid almost UAH 1.5 billion to the budgets of all levels. During the first 9 months of 2024, this amount has already reached UAH 1.09 billion.

KCPM provides working places for about 2,500 employees, offering regular salaries (the annual payroll exceeds UAH 1 billion). Kyiv Cardboard and Paper Mill has a collective labour agreement, an agreement between employees and the company`s owner that includes for a number of social guarantees:

• health insurance and access to the company`s own outpatient clinic;
• paid holidays and sick leave;
• corporate shuttle bus from home to the mill;
• a canteen with affordable prices;
• recreation for the children of the employees of Kyiv CPM.

Every tenth employee of Kyiv CPM is currently defending Ukraine. Thanks to the initiatives of the trade union and the support of Dr. Heinz Zinner, mobilized employees continue to get their average salary. In addition, they are provided with equipment, medicines and machinery, and the families of the deceased receive financial assistance. In 2024, the Austrian owner allocated UAH 60 million for these important needs.

Nina Kolodii is the Director of Economics and Finance and a member of the Management Board of PJSC “Kyiv Cardboard and Paper Mill”, has two degrees in “Law”, “Finance and Credit”. She has been with the company since August 2000, starting her career as Deputy CEO for Economics. For over 25 years, she has been heading the mill`s economic department.

What are your relations with the local authorities?

– KCPM is a town- and budget-forming enterprise, so our relations with the local authorities are fruitful: we constantly maintain close communication. Last year, we contributed approximately UAH 200 million to the local budget. In addition, we are always available to requests from residents of Obukhiv and Obukhivskyi district.

Share with us your social and charity projects.

– The charitable projects of Kyiv Cardboard and Paper Mill are quite diverse: from helping hospitals and clinics, volunteers, defenders of Ukraine to environmental education activities among local lyceums. Every month, the charity committee of the mill reviews and approves up to 50 applications for targeted humanitarian aid. Since the beginning of the year, the mill has allocated over UAH 6 million for charitable initiatives.

Confirmation of the Ukrainian record – reproduction of the longest towel-amulet on a single sheet of waste cardboard, photo by Kyiv CPM

By the way, this year, in cooperation with schoolers from Obukhivskyi district and children of Kyiv CPM employees, we set a record for Ukraine: we created the longest Obukhiv towel-amulet (62 metres) on a solid sheet of cardboard made from waste paper collected by children.

How does the Russian shelling of the energy infrastructure affect the company`s operations?

– Back in 2013, Kyiv Cardboard and Paper Mill built its own power generation source, so we have our own types of energy – heat and electricity. This allows us not to stop production even during power cuts.

During the period of full-scale war, the implementation of force majeure measures and energy management allowed Kyiv Cardboard and Paper Mill to operate steadily, supply products to customers and partners, pay taxes and reduce energy consumption. These changes have become possible thanks to the initiatives of the new Austrian owner of KCPM, Dr Heinz Zinner, and the investments made are already creating competitive advantages in the market.

Paper recycling workshop, photo by KCPM

When do you think Kyiv Cardboard and Paper Mill will be able to reach its pre-war financial performance?

– The mill is already profitable and demonstrates good results to date. Despite the uncertainty of macroeconomic forecasts for the next year, the Austrian owner of Kyiv Cardboard and Paper Mill has set ambitious goals for the company:

– further modernization of Kyiv CPM;

– expansion of the product range;

– implementation of environmental education projects and support for the local community.

As Dr Heinz Zinner mentions: “In the difficult conditions of the war, we will continue to make every effort not to leave the Ukrainian paper industry and people.” In order to reach the pre-war financial performance, we must win the war.

Based on the material of delo.ua.

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