Segezha Group increases plywood production capacity

Segezha Group, as part of its plywood production development strategy, is investing in the Vyatsky Plywood Mill capacity expansion project.

The company has upgraded existing equipment, and new units have been selected for installation. The design is almost completed. A new production building is planned, which will upgrade the raw materials reception area and existing production lines. As construction is completed, the total mill floor space would increase by 9,900 m². The new facility will be commissioned at the end of 2022.

The investments amount to about RUB 6 billion. The annual output will rise by 33%, or 63,500 m³: from 192,000 to 255,000 m³. The share of special, high added value products will expand substantially, more than doubling from 22% to 47% (42,000 to 119,000 m³). This will lead to additional manufacturing of laminated and Computer Numerical Control (CNC) machine products, as well as products with UV cured coatings.

In 2020, Segezha Group’s plywood revenue share totalled 11%. At the same time, this business segment achieved an Operating Income Before Depreciation and Amortization (OIBDA) of 38%, the highest of the Group.

79% of Segezha Group plywood is exported. The top five importers of VPM products are the USA, Germany, the Netherlands, Kazakhstan and Canada.

Segezha Group will boost its plywood output as early as this year when yet another asset, Galich Plywood Mill in the Kostroma Region, will be commissioned. This will be Russia’s first manufacturing facility dedicated to maxi size plywood sheets: 7×13 feet. The annual output of the Galich Plywood Mill’s is 125,000 m³. By the end of this year, Segezha Group’s combined annual plywood production capacity will increase by 65% to 317,000 m³, and it is expected to reach 380,500 m³ by the end of 2022.