Russian timber industry news #6-2015

– On March 17, 2015, Lesozavod 25 commissioned a second pellet production line of 60,000 tons per year at its Tsiglomen site.

– According to Karelia Pulp CEO Pavel Kalugin, growth of domestic lumber demand led to production of beams from thin logs, essentially from pulpwood, which cost pulpmills around 30% of coniferous pulpwood supply in the Russian North-West.

– Sveza group plans to increase the volume of plywood production in the Kostroma region by 70,000 m3 in the next three years.

– The Ministry of communications has developed measures against sharp increase in the price of printing paper grades. Officials suggest not only to impose duties on the exports of paper, but also to allow duty-free imports from abroad.

– LesInvest is going to expand the production of paper bags at Segezha PPM, while near Rostov-on-Don, a new plant for the production of sack paper will be built.

– ST-Lenenergo company launched a pellet plant in the community of Staraya Toropa in the Tver region. Wood granules are made from spruce, pine and alder sawdust and slabs of local enterprises. The mill’s capacity is 7,200 tonnes per year.

– By the end of 2014, the volume of pulp and paper product deliveries of Ilim Group to China has reached a record level of 1.22 million tonnes.

– The Department of forestry of the Tyumen region will conclude a lease contract for forestland with AVA Company with a total area of 16,400 hectares in Vikulovsky area for 49 years.

– Silovye Mashiny (“Power Machines”), an energy machinery holding controlled by Alexei Mordashov, acquired a 51% stake in Brazilian Fezer S/A Industrias Mecanicas. After completion of the transaction, the company Fezer S/A, a producer of woodworking equipment, will be renamed to Power Machines Fezer, and the range of products will significantly expand. The company will start producing parts for hydraulic turbines.

– The Anti-Monopoly body of the Primorsky region extended the deadline for the next application by Terneyles to acquire PrimorskLesprom company until May 27. Another contender, Iida Group Holdings (Japan), is also going to continue the fight for the asset.

– Sudoma timber mill in Dedovichi area of the Pskov region has installed the main equipment and is in the process of adjusting the utilities. In June 2015, the mill will undergo technical acceptance procedure.

More detailed news of the Russian timber industry and review of global market trends of roundwood, lumber, wood panels and pellets; exclusive articles and interviews; over 25 pages of price charts are available in our digital Russian Timber Journal.