Karelian Wood Company LLC Becomes Part of Segezha Group

Karelian Wood Company LLC, a logging and wood processing enterprise, has been officially included in the forest industry Segezha Group (part of Sistema JSFC), said Vladimir Vinogradov, member of the Board and Vice President for Strategy and Business Development, commenting on completion of the transaction to acquire the new asset. The wood processing plant near the city of Kostomuksha in the Republic of Karelia, with the output capacity of up to 250,000 cubic meters of sawn wood a year, has been acquired from Pin Arctic Oy Company (Finland).

Vladimir Vinogradov said also that integration of Karelian Wood Company into Segezha Group will provide for a considerable synergetic effect: it will increase the security of raw materials supplies to the Group as a whole, as well as increase the efficiency of wood supplies at Karelian assets of the company by means of optimizing forest resource flows. At present, Karelian Wood Company produces sawn wood for export. The annual permitted volume of logging operations for the company is over 200,000 cubic meters, forest plots of Karelian Wood Company are located in close proximity to the general forest plot of Segezha Group in Karelia; at the moment of the transaction the periodic yield of the company has been established at 2 million m3. By doing this, the company seeks to increase the annual logging volume in the Republic of Karelia by 10%.