Pestovsky LPK suspends production

As of December 1, 2022, Pestovsky LPK (Pestovo, Novgorod Region) suspends its activity for at least half a year. The key reason is the effect of sanctions-related restrictions imposed by Western countries, which entailed a four-fold decline in demand for products that were mostly exported.

The company is owned by ULK Group that purchased it from UPM (Finland) in 2017. In 2020, the venue resumed operations. The new equipment installed by ULK Group was designed to process 600,000 m³ of sawlogs and produce 60,000 t of wood pellets per year.

185 out of 220 employees were laid off and received wages for two months. The company is supposed to be on standby. Some shops will continue operations in part.