Segezha Group to start large-size long-grained plywood production

Segezha Group launched a new premium birch plywood production, the second stage of Vyatsky Plywood Mill thus representing the completion of regional priority investment project of the timber holding company Segezha Group (affiliated to Sistema JSFC).

For the first time in Russia, new automatic plywood production lines are installed on the new plywood production using extruders. These lines can significantly automate the process and reduce the consumption of adhesive materials used in production. After completion of the investment cycle, annual tax payments to the budget and off-budget funds of the region will amount to US$7.9 Million.

With the commissioning of the second stage of Vyatsky Plywood Mill, Segezha Group diversifies its product portfolio and expects to almost double the company’s share in the growing global plywood market. 

The investments into new production amounted to US$106 million. Due to modernisation, the total capacity of Vyatsky Plywood Mill has grown to 192,000 m3 of birch plywood per year including more than 70,000 m3 of a new high-margin product, large long-grained plywood.

Minister of Industry and Trade of the Russian Federation Denis Manturov, Governor of Kirov Region Igor Vasiliev, Chairman of the Board of Directors of Sistema JSFC Vladimir Yevtushenkov and Segezha Group President Mikhail Shamolin arrived in Kirov for the inauguration of the new facility.

Before the official launch of the new plywood production, Minister of Industry and Trade of the Russian Federation Denis Manturov thanked Vladimir Yevtushenkov, Sistema JSFC primary shareholder, Mikhail Shamolin, Segezha Group President, and Kirov Region Governor Igor Vasiliev.

“This project is among those of major priority in the wood processing industry. The investment exceeded US$95 million and most of it aimed at the most modern highly automated equipment. This new production will allow the company to strengthen its positions both in the domestic and international market. Our country is the total leader in the industry, which is obviously due to high quality of the Russian product”, said the minister. 

Denis Manturov also added that the Government is willing to support such major projects by all available means. A draft decree was already brought in to set up temporary quota regime for veneer log export. 

“In 2016, Vyatsky Plywood Mill successfully completed the first stage of this major investment programme, which resulted in a modern production facility with a capacity of 95 thousand cubic metres of plywood per year, 1000 additional jobs were created”, Igor Vasiliev, Kirov Region Governor, said. “Now we are witnessing completion of the second stage, which means another 475 high-tech jobs for our region, rise in tax payments by two and further development opportunities in the industry. Kirov region authorities will always support investment initiatives to contribute to the region infrastructure by producing competitive goods”.

 “The project was a tough one”, Vladimir Yevtushenkov, Sistema JSFC Chairman of the Board of Directors, noted. “Everyone who participated in its implementation contributed greatly and I thank them all. The success of the Vyatsky Plywood Mill project inspires us to meet new challenges. We have a strong hope for a close cooperation with regional authorities on other investment projects in Kirov region”.

Segezha Group President Mikhail Shamolin said: “By inaugurating the second stage of the mill we fairly inaugurate a new plant. The equipment is highly automated and the product is very competitive. The intended capacity of the mill was 170 thousand cubic metres of plywood, but we decided to change the approach and raise the efficiency of the equipment, so we are now waiting to achieve a capacity of a minimum of 192 thousand cubic metres. I’m sure we can do it, first of all due to the people who made this day possible. Segezha Group plans to produce 300-320 thousand cubic metres of birch plywood a year by 2021. It will become possible when we open a new production facility in Kostroma region in the framework of an agreement we have concluded with the regional authorities”. 

New production

Mill modernisation with the construction of a plant for the production of premium plywood was carried out within the framework of the Cooperation Agreement signed by the Chairman of the Board of Directors of Sistema JSFC Vladimir Yevtushenkov and the Governor of Kirov region Igor Vasiliev. 

Renovated Vyatsky Plywood Mill will be able to produce plywood in a wide range of sizes and options for finishing. The most important competitive advantage is the output of the plant on the market with an additional volume of sought-after large plywood with an increased water resistance and strength. Such products can be in demand to be used to make the insulating casing of tankers carrying liquefied natural gas. The company is close to completing the certification of LNG plywood according to international standards for use in LNG vessels. Due to the specially selected veneer for the front and inner layers, the LNG plywood retains the geometry and remains stable for a long time even under the influence of extremely low temperatures. After certification, Segezha Group plans to export this product to China, Korea and Japan. 

To implement the newest conceptual solutions, the new production facility is equipped with modern hardware of leading European amnufacturers such as Raute, Steinemann, Bruks and Polytechnik power equipment. The plant is also equipped with boilers to completely utilise the bark and wood waste, ensuring the production of thermal energy and reducing energy costs. 

Russia is the world leader in the production of birch plywood with a global share of more than 60 per cent. This year, Segezha Group is planning to begin construction of another plywood production in Galich, Kostroma Region.