Russian timber industry news #1-2016

– From 1 January 2016, the Russian government prohibited organizations under the jurisdiction of Turkey or controlled by citizens of Turkey to engage in a whole complex of works and services, including wood processing, construction, architecture and design. The corresponding regulation from December 29, 2015 has been published on the website of the government.

– Industrial Cellulose LLC and China 22MCC Group Corporation Ltd. have signed an agreement of intent on the construction of a pulpmill in Chusovoy (Perm region). The town was chosen for the construction of a new plant for a number of reasons. In the Perm region, low-cost raw materials are available, and it is possible to use unclaimed hardwoods, birch and aspen. The region is located at the intersection of European and Asian transport flows, which will provide cost-efficient supply to any point in Russia, Europe and Asia. In addition, the town has one prepared industrial site, where the parties plan to start construction.

– In 2016, PDK Apsheronsk will increase production of MDF six-fold from 50,000 m3 made in 2015 to 300,000 m3. According to General Director of the mill Gennady Zamotaev, in 2015, investments in production development amounted to RUR 1.2 billion, while in 2016 it is planned to invest further RUR 500 million of own funds.

– Siempelkamp will install the equipment for the production of chipboard at the Kronostar factory in Sharya, Kostroma region. The delivery kit includes ContiRoll press and Buttner drum dryer.

– Russian-Chinese joint venture Sibir-Les (Tomsk region) plans to start production of wood products under IKEA trademark, said company CEO Alexander Novikov. “We are the subcontractors of Swedish IKEA. Presently we are negotiating with our foreign colleagues about the expansion of the product range, the ultimate goal is to establish the production under IKEA brand on our site,” said Novikov.

– The Industry Development Fund of the Ministry of industry and trade of Russia has approved a concessional loan of RUR 500 million for the project of Ladozhsky house-building factory (Leningrad region), which will produce houses made of cross-laminated timber (CLT). The total cost of the project is RUR 5.1 billion, of which already invested are RUR 1.8 billion.

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.