Russian ULK Group to stop all wood pellet plants due to lack of sales

The Lesprom Network
December 28, 2022
Category: Business & Politics
Region: International

ULK Group, the largest sawmill company in the Northwest of Russia, will stop all of its pellet production facilities due to lack of sales. The company has already completely stopped the pellet plant in Pestovo, Novgorod region, said the owner and CEO of ULK Group Vladimir Butorin. The company fired about 1.5 thousand out of 5.4 thousand employees. …According to Butorin, the Russian export of wood pellets through Turkey, which began after the EU sanctions, was stopped due to the threat of secondary sanctions. In 2023, ULK Group plans to reduce lumber production by 600,000 m3. The company expects that its revenue will be reduced by 2.5-3 times. In 2021, ULK Group’s revenue reached 36 billion rubles ($495 million). ULK Group also suspended construction of a new sawmill in the Arkhangelsk region with a design capacity of 1 million m3 of lumber per year.

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