RusForest Announces Long-Term Contract for Pellet Sales from Arkhangelsk
Stockholm, 2014-06-23 09:36 CEST (GLOBE NEWSWIRE) — RusForest AB (publ) (“RusForest” or the “Company”) (NASDAQ OMX: RUSF), a Swedish forestry company with operations in Russia, has signed a long-term contract for pellet sales from the Company’s LDK-3 wood pellet mill in Arkhangelsk.
RusForest has entered into a sales contract for 60,000 tons of pellets, a majority of the Company’s annual pellet production. The pellets will be sold through one of the leading trading houses focused on bioenergy and are expected to be used as fuel in various European coal-fired power plants. The sales agreement will be complemented by spot market sales of the Company’s pellets.
Matti Lehtipuu, the Company’s Group CEO, commented, “We are very pleased to partner with a leading player in the European wood pellet business. This sales contract gives us access to the key consumers of industrial pellets in Europe and helps us build a track record as a reliable pellet supplier to the European market.”
About RusForest AB
RusForest is a Swedish forestry company operating in Eastern Siberia and the Arkhangelsk region of Russia. The Company controls long-term timber leases and utilizes these resources to produce a wide range of sawnwood products and wood pellets. RusForest is listed on NASDAQ OMX Stockholm First North (ticker “RUSF”).
In June 2013, RusForest engaged AS Hekotek, a mechanical engineering company, to build a wood pellet production facility at the Company’s LDK-3 sawmill in Arkhangelsk. The pellet facility has an annual capacity of up to 100,000 tons and allows RusForest to monetize its sawmill by-products by exporting wood pellets to Europe. The pellet plant became operational ahead of schedule at the end of January 2014.