Vyborg LK suspended production of pellets

Vyborg Timber Corporation (VLK) temporary suspended pellet manufacturing due to overproduction, as the chief power engineer of VLK Dmitry Kan announced at the conference held by Infobio agency in St. Petersburg.

The plant is the largest capacity in Europe. It is able to produce up to 900 thousand tonnes of pellets per year. However, according to Kan, plant silos are full of non-demanded pellets.

According to some experts, European buyers now impose new and tough requirements on certification of biofuels; they are also aware to conclude long-term contracts on deliveries of Russian pellets because of the possibility of aggravation of the political situation and sanctions against Russian industry in connection with the Ukrainian crisis.

However, as noted by Infobio, Vyborg LK has other problems to tackle. Many analysts agree that the company stopped because of raw material shortage: VLK has to deliver it from Karelia and other regions.