Segezha Group Implements Investment Project on Acquisition of New Equipment for Intensive Forest Husbandry

In the first quarter of 2019 logging companies of Segezha Group (part of Sistema JSFC) have acquired the equipment for intensive and sustainable forest husbandry: two large Ponsse timber-cutting complexes (TCCs), each of which consists of two medium-class harvesters and one forwarder.

Overall, the company plans to invest some RUB 365 million into the project of the intensive model of forest husbandry. In addition to acquisition of TCCs and logging trucks, this sum includes the costs of everything that was necessary for the shift work mode of the workers: special trailer homes, a mobile workshop with a sauna, containers for fuel, etc.

The first new complex, which consists of two Beaver harvesters and an EIK forwarder, has been involved in logging operations at Valdaisky logging section is Segezhsky District; the second complex, analogous to the first one, started operating on April 11 on our rented territory in Urosozerskoe forestry section,” says Sergey Detkov, Executive Director of Branch of JSC Segezhsky PPM for Forest Resources. “EIK forwarders are of medium class, and they allow logging and hauling of timber with minimal damage to the soil surface and the trees left for further growth. The Beaver model is the smallest in the line of Ponsse harversters. This multipurpose harvester is intended for clearcut and selective harvesting, and boasts excellent maneuverability, which is necessary for selective harvesting in the intensive use mode.”

The adoption of the intensive model of forest management will make it possible for the Company to provide for the drastic raw volume gain in leased forest plots, contributing to better health of the forests. Research and practical results have shown that the raw volume gain can exceed 30 percent by a large margin. The silvicultural effect is also evident: after the “weeding of the forest yard" valuable pines and fir-trees grow and "put on weight" much quicker, with dead standing trees not being in their way, etc.

The intensive forest management model has played an important role in the investment project to increase output capacities of Segezhsky PPM.

This project has been entered by the Ministry of Trade and Industry of the Russian Federation in the list of priority forest management programs, On April 5, 2019 Mikhail Shamolin, President of Segezha Group, introduced the program during the session of the State Committee for Celebration of the Centennial of the Republic of Karelia.

“Our strategic goal is to reach the figure of 1 million tons of finished products per year, including bleached softwood and hardwood pulp, and bleached and unbleached sack paper. We also expect to transition to a fully autonomous energy supply model,” Mikhail Shamolin said. Total investments into the project will amount to RUB 55 billion, Mr. Shamolin said. Export revenues are expected to reach RUB 187 billion by 2024.

To achieve the goals in the interests of the business and the region, forest industry professionals would need 3 million cubic meters of allowable cut, and have the normative database amended in the part pertaining to intensive use of forest resources. 

In 2018 the St. Petersburg R&D Institute of Forest Industry completed all the necessary fieldwork, and in the early 2019 developed new norms for forest care and restoration, and forest logging rules. Now they are being discussed. Before the end of the year the Ministry of Natural Resources of the Republic of Karelia intends to introduce changes in the Forest Plan of the region.

Representatives of the Ministry said that as soon as in the third quarter of 2019 specialists will begin work on changing logging rules, first and foremost for the Segezhsky forestry section, which will allow Segezha Group to prepare changes to the draft programs of forest management to include forest care operations.

On its part, Segezha Group has already been investing considerable money into the process of introducing the intensive forest management model. The company has financed the first stage of preparatory work to develop the new norms: two-thirds of the costs at the level of the Republic (with the total coming to RUB 65 mln) will be paid for by Segezha Group.

By the time the new norms of forest management enter into effect, the company will have acquired the necessary experience of using the new equipment and will finally fully launch the intensive forest management model.