Segezha Group, one of Russia’s largest timber holdings, has announced its plans to acquire Inter Forest Rus, a company, which operates forestry assets in the Krasnoyarsk Territory and the Irkutsk Region for US$515 million.
The deal is expected to be closed by the end of the first quarter of 2022
As a result of the deal, Segezha Group will double its rated wood cutting to 23.6 million cubic meters and will become one of the largest tenants of the forest fund in the world, which will manage 16 million hectares of forests.
Thanks to the deal, the company's sawn timber production capacity will almost double up to 3.200 cubic meters. The capacity for the production of pellets will increase by 1.8 times up to 380,000 tons. In addition, the company's plywood production capacities will expand by about 20% - up to 232 thousand cubic meters.
President of Segezha Group Mikhail Shamolin comments:
"This is a landmark deal for Segezha Group, thanks to which we can make a major step forward in the development of our assets. Taking into account our enterprise in Lesosibirsk and the recent consolidation of the Novoyeniseysk wood chemical complex, we can create a powerful Siberian cluster, in addition to the historical northwest. This will expand geography of our presence and strengthen our opportunities in sales markets for products with high added value, including the fast-growing Chinese market.
By: Eugene Gerden