Investment Project for Automated Waste-Free Timber-Processing Plant

Opportunity Snapshot

  • Country: Russia Russia
  • Industry: Manufacturing
  • Stage: Seed
  • Investment size: $49,870,000 / min. $49,870,000
  • Type of investment: Debt

Investment Opportunity

We will build a timber-processing plant and organize the manufacture of timber products in a sustainable closed cycle in Irkutsk and Siberia.

Essence of the project :
We will build a sawmill and organize the manufacture of timber products and related products in a sustainable closed cycle “forestry – timber-processing– reforestation”. The project will be implemented over 57 months.

Production will be waste-free (non-polluting). The production technology is flexible and allows making an assortment of boards and bars of any section and form. The organisation of logging using forestry machines only (no manual logging) corresponds to the requirements for Sustainable Forest Management Certification.

The sawmill will have complete power autonomy. Manufacture will be environmentally friendly and will meet the requirements of the Chain Of Custody Certificate. Manufacture will also be certified under the standards ISO 14000 “ENVIRONMENTAL MANAGEMENT SYSTEMS”, ISO 9000 “QUALITY MANAGEMENT SYSTEMS”, OHSAS 18000 “OCCUPATIONAL HEALTH AND SAFETY MANAGEMENT SYSTEMS”, and all technical regulations and standards in force on the territory of the Russian Federation for this industry.

Project geography: Manufacture will be organised in:
-Siberian Federal district,
-Irkutsk region,
-Kachugsky area
-Zhigalovsky area

The industrial plots necessary for building the sawmill have been located and their purchase is being coordinated with the local authorities. Forestry resources are available.

The production will be marketed first on Russia’s domestic market, but half of the output will be exported.

Project implementation period: 57 months.
Total investment sought (loan sum): $49,870,000

The project completely corresponds to the priority directions for development of Russia’s forestry complex in the period till 2020, established by the Government of the Russian Federation in «Strategy of development of a forestry complex of the Russian Federation for the period till 2020»:

i)Development of capacity in deep mechanical, chemical and power processing of wood;
ii)Organisation of rational, multi-purpose, continuous and sustainable use of forests.

i) Market demand for the planned products considerably exceeds the planned volumes and allows, given a reasonable pricing policy, a solid return on investment.
ii) Export possibilities, in the presence of foreign partners and available real demand, allow an even faster recovery of the invested sums
iii) The financial indicators of the planned manufacturing prove the project’s stability and sustainability.

Investors can contact us on Merar.

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