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RFP Group receive funding for wood pellet plant in Amursk

In Russia, RFP Pulpwood, a subsidiary of Russia-based forest products trading company RFP Group, has announced that it has been awarded a RUB 500 million (≈ EUR 6.3 million) loan from the Fund for the Development of Industry towards the construction of a 90 000 tonnes-per-annum capacity wood pellet plant in Amursk, Khabarovsk Krai.

According to a statement, the new pellet production facility – first announced at the 2017 Eastern Economic Forum in Vladivostok – will create 80 jobs in the region, the volume of future tax revenues will be about RUB 30 million (≈ EUR 379 000) annually. The products will be exported to Japan and Korea as biomass fuel for industrial consumers. Logging residues along with wood waste from sawmilling and veneer production will be used as feedstock for the pellet plant.

The company implements an important project for the timber industry of the Far East, the loan provided by the Industrial Development Fund will allow to provide a return on investment in a shorter period of time, and will help to realize the project efficiently and in a timely manner, said Dmitri Valtfogel, General Director of LLC Management Company RFP Group.

According to RFP Group President Konstantin Lashkevich, the main motive for investing RUB 1.5 billion (≈ EUR 18.9 million) in building a wood pellet plant was the need to recycle wood waste from the two existing sawmill and veneer production facilities factories for the production of veneer and sawn timber while biomass fuel is in great demand in Japan and South Korea.

The site for the construction of the pellet plant is the Far Eastern center for wood processing in Amursk, Khabarovsk Krai. The site is provided with its own infrastructure and convenient logistics. Construction of the plant is scheduled to be completed by the end of 2018.

Production start is scheduled for the first quarter of 2019. The annual production capacity of the plant will be 90 000 tonnes with the ability to rapidly increase capacity to 135 000 tonnes.

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