UPM sells Pestovo sawmill in Russia to Lesnaya Innovacionnaya Kompanya LLC

UPM has signed an agreement on the sale of Pestovo sawmill with Lesnaya Innovacionnaya Kompanya (LIK) LLC, as the Finnish company said in a press release. The parties have agreed not to disclose the sales price. UPM announced the search for a buyer for the Pestovo sawmill on 10 January 2013.

The Pestovo mill personnel will not automatically transfer to the new owner. However, the new owner plans to restart the sawmilling operations as soon as possible mainly with the current employees.

The sale of the Pestovo sawmill follows UPM’s renewed Timber business strategy announced in April 2012. UPM focuses on the development of sawmills closely integrated with the company’s pulp and paper mills.

Lesnaya Innovacionnaya Kompanya (LIK) focuses on logging operations in Novgorod region, Russia. By acquiring the Pestovo sawmill, the company expands its operations into sawn timber manufacturing and sales.

UPM Pestovo sawmill is located in Novgorod region, North-West Russia. Production in Pestovo started in 2004. The annual production capacity of the mill is 260,000 m3 of sawn timber and 40,000 m3 of planed products.

UPM Timber division manufactures pine and spruce lumber and further processed products for the construction and joinery industries. The company makes around 1.8 million m3 of products annually at the units located in Finland, Austria and France.