Segezha Group Announces Plan to Consolidate CJSC Novoyeniseiskiy Wood Chemical Complex

Segezha Group, a Russian integrated forest products company, which operates forestry, sawmilling, plywood manufacturing and cross-laminated timber production, has announced its plans to consolidate 100% of CJSC Novoyeniseiskiy Wood Chemical Complex. The assets of CJSC Novoyeniseiskiy Wood Chemical Complex are located in Lesosibirsk, Kransoyarsk Krai. The town also hosts Segezha Group’s timber, fiberboard, and pellet production cluster — it includes JSC Novosibirsky LDK No. 1, Ksilotek-Sibir LLC and logging assets. The purchase of NWCC will help the holding company to increase its capacity of timber production by 30-40% and pellet production by 55%. Segezha also announced that on May 20 it signed an agreement to purchase a minority stake in Tegli Holdings Ltd — the company which owns NWCC. The acquisition of the stake will allow Segezha Group to further consolidate 100% of control over NWCC and integrate the asset into the Group. The total estimated cutting area of the Group will grow by approximately 37% (by 2.2 million m3), which will strengthen the resource security of Segezha Group companies and will further allow for the development of the Segezha Vostok project on the construction of a state-of-the-industry deep wood processing biotechnological complex.