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KsyloTech-Siberia, a subsidiary of Sistema's Segezha Group, is implementing an investment project to develop a full-cycle timber harvesting and processing facility in Lesosibirsk, which the Ministry of Industry and Trade of the Russian Federation has included in the list of priority forest development projects (Order No 2870 dated 22 September 2015).
The investment project, worth a total of more than RUB 1.5 billion, envisions the establishment and development of production facilities for added-value timber processing. It aims to achieve comprehensive use of timber while also recycling timber-processing waste to make fuel pellets.
KsyloTech-Syberia LLC obtained a forest fund of 1,374 thousand cubic metres of the annual logging site. A sawmill complex, a Baschild drying complex, and a plant for production of fuel pellets with an annual production capacity of 110.5 thousand tonnes have been put into operation as part of the project.
Implementation of the project helped raise investments and advanced technologies in the region, which is a guarantee for sustainable development, and made it possible to enter new markets for product sales.
Creation of a vertically integrated production structure is the key to a significant reduction in operating losses, reduction in the cost of raw materials, as well as management and marketing costs.