Japanese Iida Group Holdings is taking over 75% of the shares in the Russian forest and wood group Russia Forest Products (RFP) for ¥60bn, roughly equivalent to US$529m or €467m. The acquisition of the share package was approved by the Russian government on 7 December.
RFP’s business activities are split into the four subdivisions of “Logging”, “Wood processing”, “Trading House”, and “Transportation and Logistics”. The Logging division includes the two biggest felling and woodworking businesses in the Russian Far East region, JSC Dallesprom and JSC Flora. Over 20% of the leased forests are managed by the holding company. On an area of approximately 4m ha, RFP is authorised to fell an annual volume of 4.1m m³. The forest are mostly stocked with softwood trees (90% larch and spruce). Hardwood trees (birch, poplar) account for the remaining 10%. The Logging division is also responsible for the supply of raw material to the Amursk Advanced Wood Processing Centre in the Komsomolsk free economic zone. Here, RFP has resources for annually manufacturing 240,000 m³ of sawn softwood and 300,000 m³ of rotary-cut veneer. A pellet works with an annual capacity of 105,000 t is also operated at the facility.