The merger between RTG and Hupex will see the creation of an enlarged group that has access to 2.7 million ha of forest in Russia and felling rights of more than 3.5 million m3.
This will be concentrated on forests in Irkutsk and Amur, which have extensive numbers of Angarsk pine and Siberian larch trees.
“This merger creates a major Russian timber products business with further ambitions to develop our cutting, processing and wood product manufacturing business to target the domestic Russian and export markets for processed timber,” said RTG managing director Leo Hambro.
“The forestry potential in Russia is enormous and it is our intention to develop the group to benefit from that potential.”
In addition, RTG has agreed a deal to take over a Chinese timber processing operation owned by Universe On International Ltd.
This will enhance the group’s production of solid and engineered flooring, a key part in RTG’s strategy to maximise value from harvesting to production.
