LIK re-launched former UPM’s sawmill in Pestovo

Lesnaya Innovacionnaya Kompaniya (LIK, Forest innovative company) re-launched production of sawn timber at the former factory of UPM in Pestovo, Novgorod region. The company intends to invest RUR 1.2 billion into production upgrades. The investor will use both own and borrowed funds. Loan for the modernization of production was provided by Rosselkhozbank.

By the end of 2014, LIK plans to increase significantly its production capacity by launching the production of 450,000 m3 of fibrolite slabs and wall panels. Equipment and technologies will be delivered by a Dutch company Eltomation. The volume of investments in the fibrolite production exceeds €15 million.

“We expanded the product range and changed the priorities”, said the managing partner of the company Andrey Ipatov. The company sees the whole building industry of Russia and the wooden house-building market in particular as its key consumer. In the future, lumber will also be sold abroad.

UPM announced its plans to sell the factory on 10 January 2013, the sale agreement was signed in July. The parties agreed not to disclose the amount of the transaction. The mill in Pestovo was launched in 2004, annual volume of production there amounted to 260,000 m3 of lumber and 400,000 m3 of planed products.