China’s Yun Chou weighs investment in debt-laden Russian newsprint producer
Solikamskbumprom is discussing a potential 20 billion-ruble investment with China’s Yun Chou as creditor claims exceed 15 billion rubles. The proposal faces creditor skepticism and a Russian newsprint market whose capacity is at least eight times domestic demand.
Chinese investor enters debt talks
Russian newsprint producer Solikamskbumprom is seeking support from Chinese technology company Yun Chou as it confronts creditor claims exceeding 15 billion rubles and multiple bankruptcy petitions. According to Kommersant, the parties are discussing the possible attraction of 20 billion rubles over several years to develop the mill and restore its solvency. Neither the structure of the proposed financing nor its implications for ownership have been disclosed.
Representatives of Solikamskbumprom told a court hearing that Yun Chou delegates had visited the production site and developed plans to upgrade the business and pursue joint contracts. A meeting on stabilizing the company was scheduled at Russia’s Ministry of Industry and Trade for October 7, with shareholders, creditors, Perm regional authorities, Minister Anton Alikhanov and representatives of the potential investor expected to participate. Kommersant said the ministry did not answer its questions, while comments from the Chinese side were unavailable.
Production almost at a standstill
Solikamskbumprom, established in 1992 from the Solikamsk pulp and paper mill, is one of Russia’s largest newsprint producers. Its principal shareholders are the heirs of Viktor Baranov and senior managers. The company recorded a net loss of 4.8 billion rubles in 2025. More than ten creditors have asked an arbitration court to declare it insolvent, according to Kommersant.
Operations are now close to a halt. Only one paper machine is running, while pulp cooking has been virtually suspended for several months, Kommersant reported, citing people familiar with the plant. Company president Natalia Stupnikova attributed the crisis to two accidents in 2024 and 2025, lower export prices, restricted sales markets, a stronger ruble, sharply higher transport tariffs and Russia’s high key interest rate.
Creditors question the rescue plan
Creditors remain wary of relying on an undeclared investment agreement. At the court hearing, Permenergosbyt and Gazprom Mezhregiongaz Perm said the mill was accumulating multimillion-ruble debts every day without attempting to pay them. They also said the company had mentioned a prospective investor during the summer but had yet to submit concrete terms or a debt-payment schedule. The creditors sought the introduction of a formal observation procedure, while Solikamskbumprom proposed a judicial truce. The hearing was adjourned.
The investment case is complicated by persistent oversupply. Denis Kondratyev, head of the Center for System Solutions, told Kommersant that Russia’s newsprint capacity is at least eight times annual domestic demand, which is below 150,000 tonnes. He said exports are effectively loss-making under a strong ruble and expensive logistics and may be viable only with state subsidies. Sources close to the producer nevertheless believe Yun Chou could preserve the mill by helping sell newsprint in China.
Yun Chou has traded with the Russian forest-products industry for decades. Publicly available information cited by Kommersant indicates that the company has imported Russian roundwood, beams and boards since 1996. Since 2014, it has specialized in exporting papermaking equipment, including to Russia, and acts as a principal intermediary in the Russian market for several large Chinese manufacturers. That experience could provide equipment and market access, but a rescue will still depend on binding financing terms, creditor approval and whether Chinese sales can overcome the mill’s production and logistics costs.
