Vyatsky Plywood Mill (a subsidiary of Segezha Group) has almost completed the second stage of its plywood mill modernization project.

    Mikhail Shamolin, President, Chairman of the Board of Directors of Segezha Group, said in his statement that

    ”We have built a factory to achieve the production of an additional 100 thousand m3 of plywood. The new production line is equipped with the latest innovative equipment which features high-level automation to promote the manufacture of high-quality products. We plan to supply the base quantity of our plywood products abroad. This means the Russian producers, and our team is gaining a better competitive edge in the global markets for woodwork products. The plywood will be produced according to the different sizes, finishing options, which include the products used for the construction of ships that convey condensed gas. Currently, we ascertain that this purpose is aimed at producing LNG plywood. This is the highest quality of plywood at a premium level.”
 He further stated that the company plans to develop a vertically integrated structure from the harvesting and rational use of forest resources to maximise the returns as well as the tax revenue in the region. There is an expected multiplier effect in agreement with the governors comments which is aimed at improving sectors such as housing construction, increase in wages, rise in living standards and an the attraction of more skilled workers to the region, etc.  from his statement it was also gathered that while the company continues to earn a remarkable revenue, it remains committed to using its financial resources to improve the regions regarding implementing proper ways to address social issues that will have a positive impact on the communities. He also stated that the achievement of these goals would be possible when there is cooperation from the stakeholders in the Kirov region.

The improvement of the Vyatsky Plywood Mill by the construction of a new plywood production plant is in line with the framework of the cooperation agreement signed on December 14, 2016. This agreement was made by the board chairman of Sistema JJSFC Vladimir Yevtushenkov and the Governor of the Kirov region, Igor Vasiliev in line with the order of the Ministry of Industry and Trade of the Russian Federation No. 4313 dated December 11, 2017. The project includes a priority listing in the forest development sector. The estimated costs of this project are put at RUB 6.4 billion (approx. USD 110 million). The company plans to commence production in March 2018 with plans to reach its capacity production by the 4Q2018.

The most significant competitive advantage of the renovated mill is its entrance into the markets with an additional volume of deficit large format plywood which has higher water resistance capacities (2440 x 1220 mm), and a thickness ranging from 6 to 40 mm. It will also feature the products unlined and lined with different tapes.
The new facilities will promote the production of the polished and laminated long grain plywood by 60.1 thousand m3 annually, and an increase in the output of plywood within the current product range by 26 m3 annually. Vyatsky Plywood Mill LLC is expected to have an aggregate capacity of 192 thousand m3 of birch plywood per year.

 Segezha had earlier announced its plans to further develop its industrial site in Karelia.