RusForest AB, a Swedish forestry company with operations in Russia, has secured bank financing for the wood pellet plant under construction in Arkhangelsk, Russia. &nbsp;
As previously disclosed, RusForest has engaged AS Hekotek, a mechanical engineering company, to build a wood pellet production facility at the company&rsquo;s LDK-3 sawmill in Arkhangelsk.&nbsp; The pellet facility will have an annual capacity of up to 100,000 tons and will allow RusForest to monetize its sawmill by-products by exporting wood pellets to Europe.&nbsp; Total investment for the pellet plant is estimated to be approximately EUR 12 million ($16.18 million), including value added tax, with approximately 70 percent financed by local bank facilities.
RusForest has now secured financing from CentroCredit, a Russian bank, in order to purchase the pellet equipment and finance construction and installation. &nbsp;The financing consists of two tranches. The first tranche amounts to EUR 4.9 million and carries an effective annual interest rate of 7 percent. The second tranche amounts to RUB 170 million (approximately EUR 4 million) and carries an effective annual interest rate of 13.5 percent. Both tranches have a 5-year maturity.
&nbsp;

2013/09/DollarSignSmall_13803030523751_largethumb.jpg

2013/09/DollarSignSmall_13803030523751_thumb.jpg

2013/09/DollarSignSmall_13803030523751.jpg

RusForest AB, a Swedish forestry company with operations in Russia, has secured bank financing from CentroCredit for a 100,000-ton-per-year wood pellet plant under construction in Arkhangelsk, Russia.

RusForest secures financing for wood pellet project in Russia

Related Stories

SPOTLIGHT | CITGO: The True Cost of Grease Selection in Wood Pelleting

ENplus celebrates 15 years of setting the global standard for wood pellet quality

Bringing Black Pellets to Belledune

Something About Eggs and Baskets

Enhancing Profitability Through Operational Excellence

Upcoming Events

USIPA 2025 Conference

2026 International Biomass Conference & Expo

RusForest secures financing for wood pellet project in Russia.css-7jxktu{position:absolute;bottom:0px;left:0px;right:0px;height:3px;border-radius:3px;background-color:var(--chakra-colors-brandBlack);}