Segezha Group continues the modernization of the Karelian Wood Company, a logging and wood processing enterprise

Segezha Group (MOEX: SGZH, a subsidiary of Sistema PJSFC) acquired the Karelian Wood Company, a logging and wood processing enterprise located near the town of Kostomuksha in the Republic of Karelia in January 2020.

In order to streamline the integration of the enterprise into the Group, a modernization schedule was drawn up for the main production lines, including the replacement of selected worn-out components and assemblies. Technical specifications for the renewal of the dry sorting area and main sawmill equipment were drawn up as well. By the end of 2020, all the major automation components of the enterprise’s key production areas—the sawmilling and packaging areas—had been updated. A number of selected worn-out components and processing line assemblies were replaced. The transport loaders were replaced with in-house equipment.

Another modernization effort, this time targeting local treatment facilities and a number of infrastructure projects, including the installation of modern communication and security systems and road construction, has been scheduled for the current year.

“With our company now a part of Segezha Group, we have been making strides in updating our manufacturing facilities and infrastructure. This modernization effort will have an effect on manufacturing volumes and the quality of our products, as well as the eco-friendliness indicators of our enterprise” says Anton Tskhai, Director General of Karelian Wood Company LLC.

More than RUB 100 million has already been invested in the plant’s modernisation. Moving forward, the company plans to expand its production capacity and secure further investments to the tune of RUB 350 million. The details of the contracts pertaining to this process are currently being worked out by the parties involved. The majority of the work involved is scheduled for May–June of 2022: the first group of sawmill machinery, step conveyors for log feeding, and the waste transport system will be replaced. As a result, the sawn timber output of the Karelian Wood Company will increase from approximately 125,000 to 140,000 cubic meters, amounting to about 11% of the total production capacity of the Group.