Segezha Group to acquire Novoyeniseysk wood chemical complex  

Mikhail Shamolin. Photo: Ekaterina Kuzmina RBC

Segezha Group, a leading Russian timber producer is considering acquiring its local rival Novoyeniseysk wood chemical complex – in a move to establish a large-scale cluster for deep timber processing in the Russian Siberia.

 

 

It is planned, the deal will allow Segezha to increase its industrial wood capacities by 30-50%, as well as cutting area by a quarter to more than 10 million cubic meters.

 

According to head of Segezha Group, Mikhail Shamolin, the company intends to create "an ultra-modern high-tech industrial cluster that will focus on integrated processing of all types of timber and will be located in the Krasnoyarsk Territory». The new cluster will focus on the manufacture of a wide range of products including paper.

 

Segezha Group has been actively expanding its operations in recent months as part of preparations for the upcoming IPO, where may bring up to $400-500 million to the company. At the end of December, AFK Sistema, the parental company of Segezha, completed the purchase of OOO Sibirskiy Les as well as OOO Beckhill enterprise in a deal of alsmost US$40 million and there is a possibility may continue its expansion in years to come.

 

Russian analysts believe the completion of the deal will allow Segezha Group to become a leader in the Russian industrial wood market in terms of installed capacities. That will be also another step towards the establishment of a large-scale pulp and paper mill with a capacity of 1 million tons in the Krasnoyarsk Territory.

 

By: Eugen Gerden