Kagazy Recycling LLP (“Kagazy Recycling”  or “the Company”), Central Asia’s largest producer of paper, corrugated board and packaging, today announced a major operational restructuring initiative.
Three months ago Kagazy Recycling engaged the services of Alix Partners, the leading turnaround and restructuring consultants. Their experienced team in the paper sector drawn from the UK and Germany, have assisted the Company in devising initiatives which will focus its sales towards more profitable customers, increase the efficiency of its production line,  and reduced the cost it pays for its raw materials. The Company believes that these initiatives will increase our top-line revenues, improve our profit margin, and reduce our cost base. We are targeting a 40% increase in our EBITDA run-rate by the end of the current year. These will be record results for the company, which we will be very proud to have achieved in difficult market circumstances.
Our restructured paper business sits alongside the improving results which we are seeing in our logistics business, and together, will support the financial restructuring upon which we are making real progress with the support of leading Kazakh and international financial institutions.
We are proud to be working together with our banks and our bondholders to make this modest but important contribution to the consolidation of Kazakhstans industrial base.

Irina Yevtushenko, General Director of Kagazy Recycling comments on the initiative: “Kagazy Recycling is the leading producer of paper and corrugated board in Kazakhstan. The company has achieved phenomenal growth in the past years to become the market leader in its sector. We have weathered the crisis much better than our competitors, some of which have cut back, or ceased operations entirely.
Tomas Mateos, the new Chairman of Kazakhstan Kagazy JSC, Kagazy Recycling’s parent company pointed out: “We are already seeing significantly improved profitability following the measures that have been taken in the last six months We are impressed by the quality of the local management and how smoothly we have been able to share the operational and financial improvement experience acquired in other markets with them”.

About Kagazy Recycling

Kagazy Recycling is part of Kazakhstan Kagazy JSC (“Kagazy”) the holding company of a group that compromises Central Asia’s largest producer of paper, corrugated board and packaging, and a leading operator of commercial warehousing and industrial infrastructure facilities.
Kagazy’s parent company Kazakhstan Kagazy plc, is effectively Kazakhstan’s largest industrial company quoted on the London Stock Exchange (LSE). Under new management since the end of last year it has taken profound and radical operational and financial improvement measures to be able to guarantee the future of the group and the industrial base of Kazakhstan. By combining the strength of its existing local management with some of the foremost experts in performance improvement, the new management is achieving immediate results.

About Alix Partners

Alix Partners is a leading global business-advisory firm offering services across four main disciplines: operational performance improvement and strategic consulting, financial restructuring and bankruptcy reorganization, litigation consulting and financial advisory services. The firm's expertise is in helping clients anticipate, evaluate and successfully resolve urgent, high-impact business challenges in an increasingly complex legal, regulatory and economic landscape. Drawing on the experience of more than 900 employees from 14 offices across North America, Europe and Asia, the firm commits small teams of seasoned professionals to deliver results when it really matters. For more information, visit www.alixpartners.com