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Segezha Group inaugurate Lesosibirsk pellet plant

In Russia, forest industry major Segezha Group, part of the joint-stock financial corporation Sistema JSFC, has recently inaugurated a 70 000 tonne per annum wood pellet plant located on the site of Lesosibirsky LDK No.1 JSC in Lesosibirsk, Krasnoyarsk region. The inauguration ceremony, which was held on December 12, 2018, was officiated by Aleksandr Uss, Governor of Krasnoyarsk Krai, Mikhail Shamolin, Chairman of the Board of Segezha Group, and other dignitaries.

Pressing for the official start on December 12, 2018, for Segezha Group’s new 70 000 tonne-per-annum pellet plant in Lesosibirisk are Mikhail Shamolin (left), Chairman of the Board of Segezha Group and Aleksandr Uss, Governor of Krasnoyarsk Krai (photo courtesy Segezha Group).

According to the company, the investments into the pellet production facility amounted to RUB 816.6 million (≈ EUR 10.6 million). The annual capacity of the new plant is 70 000 tonnes, which will be exported. The total amount of investments of Segezha Group into production development in Krasnoyarsk Krai has exceeded RUB 1.7 billion (≈ EUR 22 million).

According to Hekotek, the main technology supplier for the project, the first batch of product, 120 containers, was loaded with approximately 2 400 tonnes of pellets destined for European customers a month after the plant first started in “test mode”.

In his welcome address, Governor Uss noted that over the years Lesosibirsky LDK has produced 16 million tonnes of sawn timber, passed through difficult times, and since recently reached a period of new heights and stable growth.

The complex has completed extensive modernization, and today it is technically the best-equipped enterprise in the forest sector in Russia and abroad. Pellet production is a project, which is very important from the point of view of economy and ecology. This project must serve a good example for other enterprises in the forest industry. This is why I would like to thank the shareholders from their decision and the long-awaited financing, and I thank employees of the combine who have implemented these plans into life in a very short time, said Governor Uss.

In his response, Mikhail Shamolin thanked the team of Lesosibirsky LDK No. 1 and the builders of the new production facility.

When we came here six months ago, the place was just a construction site with new materials, reinforcement elements and concrete still being delivered. It was difficult to believe that we would have a plant already in full operation by the end of November. The team has shown us their very best side; the project has been implemented in good time and with full compliance with the budget. Additional jobs, monetary flows are being created, and we remain hopeful for continued expansion, development of technologies and construction of new production facilities at LLDK No1, said Mikhail Shamolin, Chairman of the Board of Segezha Group

The company’s plans are not limited to new pellet production. JSC Lesosibirsky LDK No.1 of Segezha Group has far-reaching plans: a major forest chemistry production with the expected volume of up to 500 000 tonnes of pulp per annum in the works.

Over the past thirty years, technologies in the forest sector have leapt forward. If previously wood processing was viewed as environmentally hazardous, now things have changed. Russia is No. 1 in the world in terms of stock of coniferous forests, but is only No. 10 when it comes to the quality of pulp. These statistics need to change. We plan to develop forest chemistry production when all state expert assessments are completed, and I think we will reach a very different level of construction, a very different level of the combine and a very different level of income and taxes for the region, said Mikhail Shamolin alluding to the new pulp and paper production plans.

He added that construction was due to begin in 2020 and expressed hope that the new production will be launched in 2022.

The new pulp and paper production will be fully computerized, environmentally friendly and very progressive. This will allow the creation of some 500 new jobs, the enterprise will process up to 3.5 million cubic meters of wood. We are looking into the future with confidence and I have no doubt at all that we will be able to create a complex like this. We discussed the project with the Governor and we found full understanding and support, Shamolin said.

The new plant is the second pellet plant to be opened by Segezha Group during 2018 – in September, a 12 000 tonne-per-annum plant was started up at its Sokol Integrated Woodworking Plant in Sokol, Vologda region.

Discussing the pellet production process during the inauguration of Segezha Group’s new 70 000 tonne-per-annum pellet plant in Lesosibirisk, Krasnoyarsk Krai (photo courtesy Segezha Group).

About Lesosibirsky LDK No. 1

Lesosibirsky LDK No. 1 is a leading sawn wood producer in Russia. The forest industry complex has been on the world market for 50 years. Annually LLDK No. 1 processes more than 1 million m3 of sawlogs producing around 600 000 m3 of finished products. The enterprise has considerable forest resource base, and cutting-edge wood harvesting and sawmilling capacities.

Its products are exported to European countries, including the UK, France, Spain, Belgium, North Africa and the Middle East, as well as to China. LLDK No. 1 is one of the main employers in the city of Lesosibirsk, with more than 3 500 jobs.

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