Amursk, July 1, 2013 - Igor Shuvalov, First Deputy Prime Minister of the Russian Federation and a Delegation of representatives from both the Russian Direct Investment Fund (RDIF) and the Russian-Chinese Investment Fund (RCIF) visited the new peeled veneer factory constructed by Russia Forest Products (RFP) as part of the investment project "Building a Far-East Centre for High Quality Wood Processing". This is RCIF’s first investment project.
The veneer manufacturing factory located in Amursk, Khabarovsk region, will produce up to 300 thousand m3 of high-quality larch veneer per year. Plans are for the veneer to be supplied to the Japanese and Chinese markets as a premium product. This will significantly reduce the volume of commodity export in favor of value-added products. This initiative represents a priority investment project in the forest management industry, with planned investment of over 12 billion RUB. The project will increase wood production by 1.5 million m3 per year and create new jobs in the region.
Zarу Arutyunyan, President of RFP said: "The construction of this factory is a successful example of how foreign investment is being attracted to this established economic sector in the Far East. Since launching the factory, we have stopped exporting larch wood for veneering; instead we produce the veneer ourselves and export the product. The success of the company’s chosen strategy is being proven as we see significant interest from institutional investors, and this in turn is having a positive impact on the assessment of the company’s share capital”.
Kirill Dmitriev, CEO of RDIF said: "This investment in Russia Forest Products is a great example of the Russian-Chinese Investment Fund’s work. Thanks to this investment, RFP has successfully completed the first stage of its project to create of the largest wood processing complex in the Russian Far East, which will contribute to substantially improving wood processing standards and will promote further development of the region’s economy."
Russian-Chinese Investment Fund (RCIF) is a direct investment fund established by Russian Direct Investment Fund (RDIF) and China Investment Corporation (CIC), the aim of the organization is to ensure high yields for investors. RCIF investment activities are focused on the development of bilateral economic, trade and investment relations between Russia and China.
Russia Forest Products (RFP) is the largest wood processing company in the Far East and ranks second in Russia for forest area under management - 5.1 million ha, and for logging volume - 2.3 million m3 for 2012. The RFP is the largest exporter of forest products in the Asia-Pacific region. The company is responsible for more than 10% and 15% of Russian exports of wood products to China and Japan respectively. The company’s personnel exceeds 6,000 people.
Russian Direct Investment Fund (RDIF) was established in June 2011 to make equity investments primarily in the Russian Federation. RDIF’s management company is a 100% subsidiary of Vnesheconombank. In each investment it makes, RDIF is mandated to secure co-investment that as a minimum matches its
commitment, thus acting as a catalyst for direct investment into the Russian economy. Further information at http://www.rdif.ru.