Swedwood Karelia and Investlesprom signed an agreement of partnership at raw wood market

The Agreement provides for Swedwood Karelia to implement contractor’s logging work at the plots of forest fund leased by LLC “Kostomukshskii LPH” and OJVC “Muezerskii LPH” (both part of Investlesprom). Investlesprom supplies coniferous sawn timber from these allotments to Swedwood and Swedwood supplies coniferous pulpwood to OJVC “Segezha PPM” (part of Investlesprom)  as well as chips from its sawmill enterprises.

Besides, at determined for joint use plots of forest land the partners apply joint efforts for forest use intensification and compliance with principles of sustainable forest use according to Forest Stewardship Council’s (FSC) criteria. For this cooperation to be successful, both parties see it as essential that we share the same values about sustainable forestry.

- This is the first partnership agreement in Russia at raw wood market that is mutually beneficial and meeting interests of Russian forest industry complex in full, - asserts managing director, “Forest resources” division, CJVC “Investlesprom”, Fedor Grabar. – We consider the achieved agreement as an important step of largest reconstruction project realization (Segezha PPM, “Polar Bear”); the project acknowledged as priority investment project in the field of forest utilization. Thanks to the agreement with Swedwood Karelia we can for sure develop he rated cutting area at leased territory. The loggers of Swedwood stably supply us with about 100 thousand cubic meters of raw materials per year, providing actually up to 10 per cent of Segezha PPM’s current demand. As for perspective according to the Agreement we significantly increase raw materials supply volumes to the mill. For every cubic meter of sawn timber supplied to Swedwood we get 2.5 – 3 cubic meters of raw material for pulp production.

- Swedwood Karelia also considers this agreement as mutually beneficial, transferring old partnership relations with Investlesprom to a long-term basis, - said General Director, LLC “Swedwood Karelia”, Pontus Sturk. – During the whole 2009 our loggers under contractor’s agreement implemented wood harvesting at the territory leased by Kostomukshskii LPH. Joint work experience is completely convenient for us and steady-state business relations permitted to start the preparation for long-term agreement conclusion already in the middle of last year. Swedwood Karelia Company assumes to expand and modernize the production and guaranteed sawn timber supplies from Investlesprom – this is a reliable foundation for investors.

Prepared by

 PR Department

CJVC “Investlesprom”

Together with

Swedwood Karelia press-service