RusForest sawlog harvesting in Magistralny decreased 10.7% to 278,896 cubic metres in 2014, compared with 312,228 cubic metres in 2013.
The lower harvesting volumes in 2014 were caused by poor weather conditions (late arrival of winter and early start of spring) in the first half of the year that shortened the harvesting season. This was partly offset by increased harvesting volumes in the second half of 2014 due to better utilization of harvesting equipment.
Subcontractors harvested 106,379 cubic metres of saw logs in Ust-Ilimsk forest lease areas in 4Q 2014, compared with 68,174 cubic metres in 4Q 2013 (+56%).
Subcontractors harvested 320,210 cubic metres of sawlogs in Ust-Ilimsk forest lease areas in 2014, compared with 222,414 cubic metres in 2013 (+44%).
In 2014, RusForest worked closely with all subcontractors to improve the utilization of annual allowable cut (“AAC”) in Ust-Ilimsk, and we increased our cooperation with the largest subcontractors there such as Ilim Group.
Anton Bogdanov, CEO of RusForest Management Company, commented, “In addition to increasing harvesting, sawmilling and sales volumes in the 4Q, we strengthened our solid track record with key customers. After completing the recent asset sales and debt repayments, we now have a clean balance sheet and are focused on increasing profitability in Eastern Siberia.”
RusForest is a Swedish forestry company operating in Eastern Siberia. The Company controls long-term timber leases and utilizes these resources to produce a wide range of sawnwood products.
