Speaking at a press briefing held at the Banknote Paper Mill on 23 March 2016, NBU Deputy Governor Mr Yakiv Smolii said that the Banknote Paper Mill located in the town of Malyn (Zhytomyr region) has manufactured the first batch of banknote paper using linen fibers, adding that this paper would be used to manufacture Ukrainian banknotes.
“Ukrainian banknote paper manufacturers have long been looking at the possibility of producing banknote paper by mixing cotton fibers and other plant fibers, such as linen fibers,” said Mr Smolii. “With all other conditions being equal, the cost of domestically produced linen fibers is markedly lower than that of imported cotton fibers, which is a scarce commodity. Using linen fibers will enable us to cut production costs related to supplying the economy with the required amount of banknotes, support domestic agricultural producers, and create more jobs.”
The NBU Deputy Governor presented the journalists with samples of the initial batch of banknote paper produced by mixing cotton and linen fibers. The physical characteristics of the banknote paper meet the new requirements set by the NBU. Linen fibers are much stronger than cotton fibers, which ensures the production of more durable banknote paper that retains its strength and resistance to damage throughout its lifetime. “The newly enhanced characteristics of the banknote paper will enable us to ensure the protection of our national currency, which will mark its 20th anniversary this year. The manufacturing of this banknote paper will mark a new stage in the development of our national currency,” added Mr Smolii
The NBU Banknote Printing and Minting Works are currently testing the newly engineered banknote paper to verify whether it meets all the necessary requirements.
Mr Smolii said that the idea of using linen fibers to manufacture banknotes is ingenious but not unique. It is a common practice in the banking industry. For instance, in some countries paper money is manufactured using paddy straw or abaca fibers also known as Manila hemp (fiber is extracted from the stalk of a tree-like herb which is of the same genus as the common banana). Linen fibers have long been used to manufacture banknote paper for dollar bills in the US.
During a sightseeing tour of the Banknote Paper Mill, the Director of this manufacturing facility, Mr Vasyl Ischenko, told journalists that banknote paper was first produced at this facility back in 1996. However, the Banknote Paper Mill was formally put into operation on 1 April 1997.
“Experts from the Italian company Fabriano, which has a long history of manufacturing banknote paper, were engaged to equip the Banknote Paper Mill with state-of-the-art technology and equipment,” said Mr Ischenko.
In 2010, the Banknote Paper Mill was upgraded and modernized. As a result, the manufacturing facility increased its production capacity and upgraded its technology and equipment to deliver top-quality banknote paper that is not inferior to that produced by peer banknote paper mills. The state-of-the-art technology and equipment enable Ukraine to manufacture new generation banknote paper with enhanced security features, which is more durable. As the banknote paper is being made, up to ten security features are embedded in it. These include advanced security features, both visually recognizable security features and machine-readable ones.
“The strong performance delivered by the Banknote Paper Mill enabled Ukraine to broaden its export opportunities. In the past 15 months, The NBU manufacturing facility has exported 700 tons of banknote paper, 90% of which is durable banknote paper. We are currently finalizing contracts for the supply of banknote paper and banknotes with several foreign companies. We hope that soon the Banknote Paper Mill will offer its innovative banknote paper manufactured using linen fibers,” said Mr Ischenko.
According to him, the state-of-the-art technology and equipment enables the manufacturing facility to produce more than 3,100 tons of banknote paper per year.