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The Japanese firm Marubeni is gearing up to build a 1.2 million tonne/yr pulp mill in the Krasnoyarsk area of Russia, following negotiations between the Japanese trading firm and the greenfield plant's Russian owner, Angara Paper.

A contract for Marubeni to build the pulp facility was signed after a trade and economic relations meeting between Russian president Vladimir Putin and Japanese prime minister Yoshihiko Noda at the 2012 APEC (Asia-Pacific Economic Cooperation) conference in Vladivostok, Russia, on September 8.

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A Marubeni contact said that under the equipment, procurement and construction agreement between the two firms, Marubeni will be the turnkey contractor for the $3.5 billion pulp mill.

He indicated that the plant will house a 900,000 tonne/yr bleached softwood kraft pulp line, the world's largest of its kind, and a 300,000 tonne/yr textile dissolving pulp line.

The facility is to be located in Lesosibirsk, a town in Krasnoyarsk krai, eastern Russia, on the Yenisei River.

Construction work at the site is slated to begin early next year, with startup scheduled for 2017, he added.

In April last year, Södra signed a letter of intent with Angara Paper to become the latter's distributor of pulp sales, if the project went ahead.

According to sister publication PPI Europe, under the letter's terms, the Swedish firm could hold up a 10% stake in the company or be paid in cash for its distribution services.

However, a final contract has not been inked between the two companies. And Marubeni is a possible candidate to be an agent for selling the pulp mill's output when it comes on stream.

According to the Japanese news agency Nikkei, around 80% of the new pulp plant's output is to be sold in Japan, China and elsewhere in Asia.

The Japanese firm is a trading powerhouse selling woodchips, market pulp, recovered paper, paper and board on the global market, with its business focusing on fast-growing Asian sectors for the past several years.

The company has also developed managed plantations that total 390,000 ha in Australia, Brazil, Canada, China and Indonesia.

In the mid-stream and downstream forestry industry, it owns majority stakes in two pulp producers, one based in Canada and the other in Indonesia, and in several paper and board firms in Japan. It also has minority shares in two recycled containerboard manufacturers (the Malaysian firm GS Paper & Packaging and the Taiwan-based Long Cheng Paper (China) Holdings and in several Japanese firms.

PT TEL pulp plans: Currently, Marubeni sells market pulp manufactured at the 475,000 tonne/yr Peach River pulp mill in Alberta, Canada, operated by its subsidiary Daishowa-Marubeni International, and the output from another subsidiary, PT Tanjung Enim's (PT TEL) 450,000 tonne/yr bleached acacia kraft pulp in South Sumatra, Indonesia.

Earlier this month, the Indonesian media reported that PT TEL planned to erect a new 500,000 tonne/yr pulp line at the facility. The Marubeni source denied the report, saying it has no plans for expansion there at present.

He said that the plant is planning a 5-10 annual maintenance downtime in October, but further details, such as the exact dates for the shut, have not yet been hammered out.