New strategy: until 2028, Sveza will invest more than 1.5 billion rubles in its own logging

This year the company has registered a new legal entity – Sveza Resource  LLC , which allows to implement a pilot project of its own procurement in Totemsky and Tarnogsky districts of the Vologda region.

Since the beginning of its own logging “Sveza” becomes a vertically integrated company with a full production chain – from the collection of raw materials to the sale of finished high-margin products. Vertical integration will allow “Sveza” to plan supply and to know in advance the prices of raw materials. Timber harvesting on its own will begin at the end of 2019. Investments in the project for the current year will amount to more than 270 million rubles, and by 2028– more than 1.5 billion rubles.

“As a reliable partner, we continue to actively invest in our suppliers of raw materials, purchasing logging equipment and road transport for them. Own logging will complement the resource base, increasing the sustainability of the growing business of the company”, – said Alexander Protchenko, head of the Forest Management Departament of  Sveza.

The updated strategy of the company assumes expansion of a production portfolio: development of the whole line of modern bioproducts and increase in a share of green energy on the basis of complex processing of renewable forest resources and their careful restoration. Working in new segments for the company implies an increase in capacity, to cover which it is necessary to introduce internal logging.

Sveza has been operating in Russia since 1997 and produces 1.4 million cubic meters of high-quality products annually, including plywood and chipboards. Sveza includes Sveza-Les  LLC (supplier) and plants-producers in the Leningrad, Vologda, Sverdlovsk, Tyumen, Kostroma (2 works) regions, as well as in Perm Krai.

According to corporate press service