Apr 13, 2011. ‘I could speak the whole day about China, I like China. Its share is 20%, and this share is rising. Average sawnwood price in China in 2010 was $215 per cubic meter’.
Svyatoslav Bychkov: Ilim Timber’s consolidated revenue to reach $800 million in 2011
Moscow, Apr 13, 2011. /Lesprom Network/. ‘When we established the company, the market was on the rise, assets cost much, so we thought about organic growth and our strategy was to become a national champion’, said Svyatoslav Bychkov, Ilim Timber Industry spokesman speaking at Russian Forest Industry 2011 conference held in Moscow on April 12-14.
‘After the crisis we decided on global consolidation. In Russia, we could buy almost nothing: there are no first-class assets, while greenfield building is very expensive. For the same amount as greenfield building we bought two mills in Germany having consolidated capacity of 2 million cubic meters per year’, he said.
‘We were selecting potential assets, so Tolleson Lumber from Georgia, USA, appeared in our list. This company never worked with losses, a firm family company. Now we are world’s seventh producer of sawnwood with consolidated capacity of 3.9 million cubic meters’, Bychkov said, ‘Almost all Top10 sawnwood producers are local companies. We intentionally chose the strategy of breaking the borders of one region’.
‘We are able to supply from Asian part of Russia to China, German mills are ideal for European deliveries. American mills produce 50% for internal market and 50% for export’.
Bychkov said that MENA countries market occupies 6% of Ilim Timber sales. ‘I could speak the whole day about China, I like China. Its share is 20%, and this share is rising. Average sawnwood price in China in 2010 was $215 per cubic meter’.
‘There is shutdown of capacities in the US, production load is 60% now’, Bychkov said, ‘There is a firm trend towards growth of sawlog prices. The company is now updating Bratsk woodworking mill and is going to install a German line in Ust-Ilimsk.
‘We are already a global company, our corporate language is English. We are planning to continue acquisitions, while the market gives such an opportunity. Following the results of 2011, we are going to receive $800 million of consolidated sales’.
