Segezha Group increases pellet production and exports to Europe

In 1H 2021, KsyloTech-Siberia, the Company’s pellet asset in Krasnoyarsk Krai at the Lesosibirsk Sawmills and Woodworking Plant (LLDK No. 1), produced 43,400 tons of pellets, a 17% YoY increase. Between January and June 2021, 40,200 tons of pellets were shipped to Sweden, Denmark, the Netherlands, the UK and France from the port of St. Petersburg. In comparison, in 1H 2020, the total volume shipped amounted to 36,400 tons.

Pellets are exported in 20-foot-long containers and transported to New Port station (St. Petersburg) by container trains holding a minimum of 114 containers each (an average of three-four trains per month). From there, they are transported to ships en route to destination countries.

“Denmark, the UK and the Netherlands remain our core long-term consumers in Europe. There is also a demand for Siberian biofuel in France, Ireland, Sweden and Finland. In 2020, EU pellet exports amounted to almost 90,000 tons, and in 2021, we plan to further increase this volume”, said Julia Shevlyakova, Sales Director at LLDK No. 1.

Driven by the increase in biofuel orders and enabled by a third processing line commissioned in 2020, KsyloTech-Siberia has increased its production output from 70,000 to 110,500 tons. In 2023 the Company plans to build a second pellet plant with a 100,000-tonne capacity.