RusForest opens Arkhangelsk pellet mill
RusForest, a Swedish forestry company with operations in Russia, has put its wood pellet production facility at the site of its existing sawmill into operation.
The construction of the pellet plant in Arkhangelsk is close to completion, with it now in the test-production phase. Full capacity is expected by the end of March. As previously reported by Bioenergy Insight, RusForest engaged Hekotek, a mechanical engineering company, to build the plant.
The pellet mill will have an annual capacity of up to 100,000 tonnes when it begins full-scale production. These pellets will be exported to Europe.
Commenting on the project, when started-up ahead of schedule, CEO Matti Lehtipuu says: 'The pellet production launch accelerates our path to profitability and gives us solid ground to further develop our core Arkhangelsk assets, including reviewing options for the sawmill itself.'
The total cost of the plant was approximately €12 million, with 70% financed by local bank facilities.