RusForest Ust Ilimsk

RusForest Ust Ilimsk (formerly PIK-89), which is based in Ust-Ilimsk (Russia), was originally founded in 1989 by a prominent Russian businessman, and built up from scratch into one of the largest harvesting and sawmilling operations in the Irkutsk Region.

RusForest owns 100% of RusForest Ust Ilimsk, the parent company of a group with an annual allowable cut (AAC) of 734,700 m3 of roundwood per year on a consolidated basis, pursuant to several forest leases which cover an area of 436,033 hectares in the Irkutsk Region and in the Evenkeya Autonomous Region. The forest leases have a very high share of softwood and a large share of the lease areas consist of mature and over mature forests. The forest holdings are also favourably located with an average distance of 120-150 km to the company's sawmills. RusForest Ust Ilimsk primarily relies on its own harvesting operations within its lease areas, with a share of the annual harvest being handled by third party sub-contractors.

The company processes the majority of its sawlogs at its own sawmilling workshops and one glued products factory, producing annually some 100,000 m3 of sawnwood and 1,800 m3 of finger joint and glue-lam beams. Going forward plans include the expansion of RusForest Ust Ilimsk’s sawmilling capacity through de-bottlenecking.

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Log supplies during summer are also done by barge (left). Main HewSaw R200 saw line (right).

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Ust Ilimsk drying chambers (left), and ready packaged sawn wood under the registered trademark "Angara" (right)

Tuba

During the beginning of 2010 RusForest stopped sawmilling activities at the small scale sawmill in Tuba and and move the resulting logs to RusForest Ust Ilimsk in order to increase throughput there.

Tuba-Les is a harvesting and sawmilling operation located around 60km from Ust-Ilimsk, by the village of Tuba, which previously formed part of the RusForest Ust Ilimsk. Tuba-Les has a sawmill with a capacity of some 25,000 m3 of kiln-dried export-quality sawnwood annually, and a saw for small diameter logs with a capacity of 2,000 m3 per year.

Tuba-Les is the lessee of several forest leases with a combined annual allowable cut (AAC) of 235,000 m3, of which around 70% is softwood, covering an area of around 117,000 hectares.

Tublesprom is a pure harvesting operation. The Company is now essentially part of Tuba-Les, for which it provides a supply of high-quality logs to the Tuba-Les sawmill. Tuba-Les' lease areas are particularly attractive not only because of the high percentage of softwood, but also because of the exceptionally low average distance from forest to sawmill.