RusForest, which has not revealed the identity of the buyer, is using most of the income to pay off debts for the Boguchany sawmill and harvesting operation in eastern Siberia. It will keep a net US$4m.
The sawmill has an annual sawn timber capacity of 120,000m3, while the harvesting company – RusForest Angara – holds forestry leases with 748,000m3 of annual allowable cut.
RusForest said the Boguchany operations continued to operate at a loss due to a lack of adequate rail logistics and the absence of nearby pulp mill for the sawmill’s residual products.
"The sale of the Boguchany units reduces RusForest’s loss-making operations and allows management to focus on improving the company’s remaining core operations," it said.
RusForest’s remaining operations have a combined annual sawn timber capacity of 210,000m3.
"We are very pleased to sell the Boguchany forestry assets in order to stop burning cash there and to increase our likelihood of achieving positive cash flow later this year," said Matti Lehtipuu.
