FAR EASTERN CENTER OF ADVANCED WOOD PROCESSING

 
8,1 billion rubles Total investments
650 Number of jobs
For historical reasons, Russian wood processing capacities are concentrated in the more developed European part, and the woods are located in Siberia and the Far East. Transporting wood from beyond the Urals to production facilities is not cost effective. So, the Far Eastern regions, rich in wood, have two options – export wood or develop advanced processing technologies and arrange deliveries of wood products to the domestic market and neighboring countries.

RFP Group placed a bet on the second option. And now, it is a group of technologically related companies, leaders in their segments, which operate the full cycle from logging to delivery of advanced wood products to Asia-Pacific countries.

RFP Group together with Amur Timber Industry Company and Amur Industrial Center are implementing a strategic project, which involves construction of the Far Eastern Center of Advanced Wood Processing to be launched by 2018. The facility is expected to become the largest wood processing center in the Far East. In September 2009, this project was included in the list of priority projects in the area of forest development. And since 2015, it has become the resident of Komsomolskaya priority development area. Access to raw materials, proximity to sales markets, developed infrastructure and excellent logistics parameters of the production facility in Amursk bring a promise of success to the project.

Preferences granted to priority development area residents help to increase the profitability of the project in the Far East, which affects product costs and competitiveness on domestic and external markets.

At the first stage of the project in 2009–2015, the company launched a 300 thousand cubic meter facility producing sliced veneer in Amursk.

However, the natural disaster made the first steps of the project more difficult. In 2013, the Russian Far East experienced the largest flood in recorded history. The federal route Khabarovsk – Komsomolsk-on-Amur was temporarily closed, which lead to delays with equipment deliveries. However, the company managed to make up for lost time quite soon.

At the second stage in 2015–2017, it plans to increase the production of veneer and launch manufacture of dried lumber with the annual capacity of 240 thousand cubic meters.

The company also plans to engage partners in joint manufacture of such products as fuel pellets, stressed skin veneer, LVL beams, wooden house-building elements, prefabricated elements for low-rise frame and panel houses. It entered into the respective agreement with Iida corporation from Japan.

The company currently supplies products to China and Japan. Further plans include deliveries to Mexico, Turkey, Republic of Korea, Canada, USA and New Zealand.
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General director of LLC MC RFP Group Dmitry Valtfogel:
“The project envisages creation of a complex of complementary wood processing facilities ensuring waste-free utilization of harvested wood, with heat and power generated using production waste.”

Start-up: 2009–2017
Net present value (NPV): 1.36 billion rubles
Production cost reduction: 5%
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