Segezha Group includes modern converting facilities in Russia and Europe producing paper sacks for industrial needs and consumer packaging.
In 2020, output of paper packaging increased 2.3% to 1,291m sacks. The Group continued to increase the share of high-margin products in its portfolio, including by construction of new production facilities in the Moscow region.
In 2020, the share of sales of Segezha Packaging in the Russian market was 64%.
Segezha Group exports almost 100% of its sawn timber to dozens of countries, with most volumes consumed by construction companies and producers of furniture and packaging. The main markets for the company’s sawn timber are China, Europe and MENA.
The output of sawn timber grew by 17.5% in 2020 year-on-year to 1,191,500 cu m thanks to the acquisition of LLC Karelian Wood Company, a logging and timber processing enterprise, at the beginning of 2020 and the increased output at existing facilities.
The production of biofuels from sawmill by-products is one of the important areas of Segezha Group's environmental policy. At the end of 2018, Lesosibirsk WP No 1 launched a plant for the production of wood pellets made from sawdust without any chemicals. Heat transfer of this modern type of fuel 1.5x higher than that of ordinary firewood. The heating value of pellets is almost equal to that of coal. The launch of the pellet production line will enable the Group to optimise the utilisation of wood by transforming the by-products of timber sawing into fuel pellets and heat power. Today, the entire volume of pellets is supplied to industrial consumers and to large power plants in Europe. In the future, it is planned to double the capacity of pellet production in order to provide Russian consumers and customers in the EU with biofuels, including for heating public buildings and individual houses.
In 2020, Segezha Group inaugurated the second fuel pellet facility at the Lesosibirsk Woodworking Plant No 1, which increased the Group’s aggregate pellet production capacity to 110,500 t p.a.
Segezha Group produces 70% of Russia’s sack paper output. Over 30% of the paper output is supplied to the Group’s facilities in Russia and Europe to manufacture paper sacks and bags, and the remaining 70% is sold in Russia or exported. The share of exports in sales to external customers exceeds 90%, and geography of supply is more than 75 countries. The main export markets for Segezha Group are China, Latin America, Southeast Asia, North Africa, the Middle East, and also Europe.
In 2020, Segezha Group’s paper output grew by 3.6% year-on-year to 402,000 tonnes, mostly thanks to the measures taken to enhance the efficiency of production facilities.
Most of the plywood produced by Segezha Group is made for exports (79% of the output in 2020). Plywood is supplied to more than 60 countries, the key export markets being Europe, the United States, Canada and Asia Pacific, including China, South Korea and India.
In 2020, Segezha Group’s plywood output remained the same as in 2019, 192,000 cu m, due to full utilisation of production capacity. <
In the reporting period, the Group continued building the plywood mill in Galich, the Kostroma region, with an annual capacity of 125,000 cu m of birch plywood. It will be commissioned in 2021.
Segezha Group produces laminated wood structures and prefab glulam houses, and also designs and builds wooden houses from glued laminated timber.
Segezha Group’s laminated wood structures are mostly exported to Europe, where the demand for the products of this kind is high. Italy, Germany and Austria were the main markets in 2020, accounting for 84% of all sales in the segment.
In 2020, Segezha Group completed the construction of Russia’s first CLT plant with a capacity of 50,000 cu m and began producing CLT panels. CLT panels are crosslaminated layers of softwood timber, which have the same strength as such traditional construction materials as concrete, steel and brick, but are superior in terms of production costs, eco friendliness and ease of maintenance.