Russian timber industry news #11-2016

– Kiev cardboard and paper mill (Ukraine, belongs to Pulp Mill Holding along with Russia’s Arkhangelsk PPM) became completely independent of the Russian market of wastepaper: over a four-month ban on the wastepaper exports from Russia, the plant was able to build up significant inventory in its own warehouses. For several years, the company has been able to develop a branch network for the collection of recyclable paper.

– Lesozavod-25 has started lumber shipments to the Egyptian market through Solombala terminal (former industrial zone of the bankrupted Solombala sawmill). Until the end of 2016, the company plans to pass 50,000 m3 of products through this terminal. Egypt is one of the most important markets for the company with a sales share of 25%, the most popular item being pine timber, says Commercial Director of the mill Mikhail Krymshamhanov. After modernization, production volumes have increased, which has created a shortage of logistics facilities.

– VTB Bank has opened two non-revolving credit lines in the amount of RUB 600 million and €2.5 million to Belozerskles LLC (belongs to the holding company Cherepovetsles, Vologda region) for a period of seven and five years respectively.

– Ustyansky timber industry complex (ULK Group, Arkhangelsk region) ordered eight drying tunnels HFB from Heinola Sawmill Machinery Inc. Four tunnels are intended for drying sideboards, and the remaining – for the central boards.

– In Munich, agreements on German investments in Russia were signed on June 1 in the amount of €600 million, reported the source of Lenta.ru news website. According to the source, the investment agreement was signed between the Governor of Kaluga region Anatoly Artamonov and Kronospan Group on the construction of an MDF factory worth €200 million.

– In April 2016, the Irkutsk branch of First Freight Company JSC carried out transportation in covered wagons of the first batch of fuel pellets produced at LDK Igirma sawmill.

– Sveza Novator factory (Veliky Ustyug, Vologda region) switched to automatic plywood feeding and pressing in 1Q 2016. Installation and commissioning of the equipment took RUB 137 million of investments. The project was implemented in cooperation with the specialists of the Finnish company Raute, who noted that this unit is the fastest one operating in Russia.

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.