Segezha Group reports overall increased sales, China tops export market

Russian timber giant Segezha Group has reported global export sales increments of 33 percent as at end 2016, driven by increased production capacity and an improved economy. The number of countries reached expanded from 11 to 14 countries.

Due to reduced export to low margin markets, export focus shifted to the south east, including China. Core operations of the sawmill in Krasnoyarsk, Lesosibirsk Sawmill №1, saw increased volume sales of 31 percent. In 2015 Lesosibisrsk Sawmill №1 sold about 140,000cbm of sawn timber to China, up from 85,000cbm in 2016.

China is currently one of the most vibrant markets, mostly trading spruce sawn timber, buoying sales for the Group’s core operations in Lesosibirsk Sawmill №1, Onega and Segezha Sawmills.

At present, 10—12 percent of annual output is exported from Onega (Arkhangelsk Region) to China while 10-15 percent is dispatched from Segezha (Republic of Karelia).

“The bulk of our products in this segment is in high demand abroad,” Sergey Pomelov, Segezha Group’s CEO commented. “Foreign buyers are comfortable with quality and best value of our sawn timber”.

The Group, part of Sistema JFSC, also increased supplies to Europe including France, Belgium, the Netherlands, UK, Estonia and Germany.

Total annual export sales of sawn timber across the Group stands at 904,000 cbm. The Group’s overall sawing index exceeded 2.2 million cbm of sawn timber. The holding’s share of internal wood supply in raw wood total amounts to 63 percent.