Russian Taiga Group acquires Karelia Pulp to bolster paper and packaging expansion

RUSSIA – In a strategic move to strengthen its foothold in the paper and packaging industry, Russian timber major Taiga Group has acquired 100 per cent of Karelia Pulp, one of the country’s largest pulp producers, according to industry sources including Lesprom.

The acquisition includes Karelia Pulp’s flagship asset, the Kondopoga Pulp and Paper Mill in the Republic of Karelia, a historic industrial complex and one of the oldest pulp and paper operations in Russia.

The deal marks Taiga Group’s diversification beyond its core lumber and logging operations into the high-demand paper and packaging sectors, which have seen rising domestic demand amid shifting export dynamics and import substitution policies.

Taiga Group, known for its production of premium softwood lumber, has long been a key player in Russia’s forestry sector, specializing in sustainable logging and wood processing.

The acquisition of Karelia Pulp allows the company to vertically integrate its operations, from forest resources to value-added packaging materials, aligning with the national strategy to promote deeper processing of timber resources.

Karelia Pulp has been undergoing a major transformation in recent years. In 2021, the company invested approximately 50 billion rubles (US$679 million) to modernize the Kondopoga facility.

The upgrade allowed the mill to shift from newsprint production, once a dominant output, toward packaging cardboard, in response to declining demand for print media and the global surge in e-commerce packaging.

The modernization effort positioned Karelia Pulp as a significant domestic producer of containerboard and other packaging materials, products increasingly vital for Russia’s food, consumer goods, and logistics sectors.

Industry analysts view the acquisition as part of a broader trend in Russia’s pulp and paper sector, where companies are adapting to new market realities following geopolitical shifts and export restrictions.

With global paper demand stabilizing and packaging demand continuing to grow, Russian firms are turning inward, seeking to enhance local capacity and value addition.

“The deal consolidates Taiga Group’s position in the timber value chain and strengthens Russia’s self-sufficiency in packaging materials,” commented one forestry analyst.

“It reflects how resource-based companies are evolving toward integrated, higher-margin operations.”

The transaction underscores the growing importance of packaging production in Russia’s industrial landscape, a sector poised for sustained expansion driven by domestic consumption and e-commerce growth.

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