OREANDA-NEWS. March 14, 2014. RusForest AB announces preliminary 4Q 2013 and full-year 2013 production. RusForest sawlog harvesting increased 13% to 187,067 cubic metres in 4Q 2013 compared to 164,936 cubic metres in 4Q 2012.

RusForest sawlog harvesting increased 11% to 711,488 cubic metres in 2013 compared to 638,719 cubic metres in 2012, as the company said in the press release received by Lesprom Network.

RusForest sawnwood production increased 2% to 68,267 cubic metres in 4Q 2013 compared to 66,778 cubic metres in 4Q 2012. RusForest sawnwood production increased 5% to 263,765 cubic metres in 2013 compared to 251,059 cubic metres in 2012.

Anton Bogdanov, the Company’s Group COO, commented, “In addition to increasing harvesting and sawmilling volumes in the fourth quarter, we were able to increase our average sales price realization for sawnwood by 4% in 4Q 2013 compared to 3Q 2013. With the recent start-up of the Arkhangelsk pellet mill and the sale of our non-core Boguchany assets, we are making significant progress with the operational turnaround.”

Arkhangelsk (Northwest Russia) harvesting produced 26,937 cubic metres of sawlogs in 4Q 2013 compared to 34,055 cubic metres in 4Q 2012. Lower volumes were a result of suspending harvesting operations in unprofitable forest areas.

The Arkhangelsk sawmill (LDK-3) produced 31,664 cubic metres of sawnwood in 4Q 2013 compared to 31,611 cubic metres in 4Q 2012. The construction of the pellet mill at the LDK-3 sawmill is close to completion, and the plant is now in the test-production phase with full capacity expected by the end of March 2014.

Magistralny (Eastern Siberia) harvesting produced 92,952 cubic metres of sawlogs in 4Q 2013 compared to 65,157 cubic metres in 4Q 2012. Harvesting in forest lease areas controlled by third parties in 4Q 2013 totaled 50,233 cubic metres – more than half of total harvesting – in order to secure sawlogs suitable for Japanese production.

The Magistralny sawmill produced 20,806 cubic metres of sawnwood in 4Q 2013 compared to 15,453 cubic metres in 4Q 2012. The average Magistralny sawnwood price increased by 31% in 4Q 2013 compared to 1Q 2013.

Boguchany (Eastern Siberia) harvesting produced 67,178 cubic metres of sawlogs in 4Q 2013 compared to 65,724 cubic metres in 4Q 2012. The Boguchany sawmill produced 15,797 cubic metres of sawnwood in 4Q 2013 compared to 19,714 cubic metres in 4Q 2012. Lower volumes were a result of the late arrival of winter in Siberia. Sawlog hauling operations were suspended in November due to wet and muddy road conditions.

RusForest has sold the Boguchany sawmill, Boguchansky LPK, for \\$8 million and has agreed to sell the Boguchany harvesting company, RusForest Angara LLC, to the same buyer for \\$5.8 million.

RusForest is a Swedish forestry company operating in Eastern Siberia and the Arkhangelsk region of Russia.