Russian Timber Group Limited, through its subsidiaries, harvests trees in Russia under strict harvesting licences granted through leasing agreements of state owned forest plots. Currently RTG leases approximately 2.4 million hectares which contains approximately 200 million m3 of mature and overmature reserves. Based on the forests’ characteristics and growth rate, the Group’s sustainable annual felling rights, as defined by the Russian government, amount to approximately 3.3 million m3. In 2006 the Group’s combined harvest volume was approximately 2 million m3, well below the sustainable level of harvest allowed within the leased forest.
Modern Wood Processing:
Russian Timber Group Limited also processes some of its harvested roundwood. The Group has 3 sawmills in Irkutsk and 1 sawmill in Amur region which produce a range of green and kiln-dried, planed and rough-sawn lumber of varying species and specification. The majority of timber is sold to the export markets of Asia and Europe. Further details of product specifications are available on request.
Producing Finished Products:
Much of the roundwood and processed timber sold from the Group’s Russian operations is further processed into finished product by the Group’s buyers at present. The Group’s Chinese operation, Heilongjang Far East Forest Co Ltd, aims to capture some of the extended value chain as it produces finished wooden flooring products (solid and engineered) from a mixture of species and in varying specifications depending on the demand. Further details of product specifications are available on request.
