Segezha Group Launches New Pellet Plant in Lesosibirsk

The new technological line for production of fuel granules (pellets) has been launched in a special ceremony at Lesosibirsky LDK No. 1 (Segezha Group, part of Sistema JSFC). The commissioning of a modern environmentally friendly production comes as a result of the priority investment project of the company in the sphere of forest exploitation - “Development of the full cycle wood processing facility in Lesosibirsk.”

The investments into the pellet production facility amounted to RUB 816.6 million. The capacity of the new enterprise is 70,000 tons of ready products, which will be exported. The total amount of investments of Segezha Group into production development in Krasnoyarsk Krai has exceeded RUB 1.7 million.

The presentation ceremony was attended by Aleksandr Uss, Governor of Krasnoyarsk Krai, Mikhail Shamolin, Chairman of the Board of Segezha Group, and other heads of the Krai and the company.

In his welcome address, head of Krasnoyarsk Krai Alexander Uss noted that over the years Lesosibirsky LDK has put out 16 million tons of sawn timber, passed through difficult times, and since recently reached a period of new heights and stable growth.

“The combine has completed extensive modernization, and today it is technically the best equipped enterprise in the forest sector in Russia and abroad,” head of the Krai said. “Pellet production is a project, which is very important from the point of view of economy and ecology. This project must serve a good example for other enterprises in the forest industry. This is why I would like to thank the shareholders from their decision and the long-awaited financing, and I thank employees of the combine who have implemented these plans into life in a very short time. Godspeed!” Governor of Krasnoyarsk Krai Aleksandr Uss said.

In his response, president of Segezha Group Mikhail Shamolin thanked the team of Lesosibirsky LDK No. 1 and the builders of the new production facility.

“When we came here six months ago, the place was just a construction site with new materials, reinforcement elements and concrete still being delivered. It was difficult to believe that we would have a plant already in full operation by the end of November,” Mikhail Shamolin said. “The team has shown us their very best side; the project has been implemented in good time and with full compliance with the budget. Additional jobs, monetary flows are being created, and we remain hopeful for continued expansion, development of technologies and construction of new production facilities at LLDK No. 1.”

The company’s plans are not limited to new pellet production. JSC Lesosibirsky LDK No.1 of Segezha Group has far-reaching plans: a major forest chemistry production with the expected volume of up to 500,000 tons of pulp a year is in the works.

“Over the past thirty years technologies in the forest sector have leaped forward. If previously wood processing was viewed as environmentally hazardous, now things have changed. Russia is No. 1 in the world in terms of stock of coniferous forests, but is only No. 10 when it comes to the quality of pulp. This statistics needs to change. We plan to develop forest chemistry production when all state expert assessments are completed, and I think we will reach a very different level of construction, a very different level of the combine and a very different level of income and taxes for the region,” Mikhail Shamolin said. He added that construction was due to begin in 2020 and expressed hope that the new production will be launched in 2022.

“The new pulp and paper production will be fully computerized, environmentally friendly and very progressive. This will allow to create some 500 new jobs, the enterprise will process up to 3.5 million cubic meters of wood,” Mikhail Shamolin said. “We are looking into the future with confidence, and considering the hang of the job that Siberian people have, I have no doubt at all that we will be able to create a combine like this. We discussed the project with the Governor and we found full understanding and support. We have the boldest of plans. Let me wish you best of luck, and thank you very much.”

Pellets (pressed granules) are an inexpensive and high-quality fuel, which is made of pure wood with no chemical binders added. They are absolutely safe and environmentally friendly. The heating efficiency of pellets produced under high pressure with no chemical binders added is almost equal to that of coal. As compared to mineral fuels (coke, coal, natural gas), biofuel, when burning, produces dozens of times less greenhouse gas, which is one of the key factors leading to negative climate change. When they burn, pellets produce considerably less sulfur compounds (less than 0.08%).

Lesosibirsky LDK No. 1 is one of the leading sawn timber manufacturers in Russia. The combine has been on the world market for 50 years. Annually LLDK No. 1 processes more than 1 million cubic meters of round timber and produces around 600,000 cubic meters of ready products a year. The enterprise has considerable forest resource base, and cutting-edge wood harvesting and wood-sawing capacities. Its products are exported to European countries, including the UK, France, Spain, Belgium, the states of North Africa and the Middle East, as well as to China. LLDK No. 1 is one of the main employers in the single-profile city of Lesosibirsk, with more than 3,500 jobs.