The group said the acquisition is part of its strategy to increase its raw materials security in forest reserves, thereby adding to its already solid base for further wood processing development in the value chain.
Tim Lewin, chairman of the advisory council of Zindel Private Equity Fund, the majority shareholder of the Tsar Group, said the acquisition represented another important step in Zindel’s strategy to establish an integrated timber company based on Russia’s greatest sustainable resource.
“This acquisition should reinforce our presence in the region, since we consider the republic of Karelia to be of primary concern due to the high quality of its forests and proximity to the main markets,” said Ludmila Timofeeva, chief executive officer of the Tsar Timber Group.
“We believe that Pyaozerskiy LPH has two of the most valuable assets in the industry: with its professional management team and its large well-managed, forest resources, the company is well positioned to invest into value-added production based on its facilities,” she added.
“The acquisition of Pyaozerskiy LPH will strengthen the group’s position as a leading supplier of pine sawngoods to the north European markets and pulp logs to Finland,” added Sampsa Auvinen, commercial director of the group.
