Stockholm, 2015-01-19 08:05 CET (GLOBE NEWSWIRE) -- RusForest AB (publ) (“RusForest” or the “Company”) (NASDAQ OMX: RUSF), a Swedish forestry company with operations in Russia, has engaged AS Hekotek (“Hekotek”), a mechanical engineering company, to build a wood pellet production facility at the Company’s Magistralny sawmill in Eastern Siberia.
RusForest has signed a contract with Hekotek for delivery of equipment to construct a wood pellet plant with an annual capacity of 30,000 tons at the Company’s Magistralny sawmill in Eastern Siberia.
The new pellet plant will ensure utilization of all sawmill residuals and improve the long-term profitability of RusForest’s Magistralny unit. The Company plans to produce premium pellets for the European and South Korean markets.
The total investment is estimated to be approximately EUR 4.4 million before value added tax (“VAT”). Completion and launch of the new pellet plant is expected by the end of 2015.
About AS Hekotek
Hekotek is a mechanical engineering company. Its main operations include the design and production of woodworking technologies and facilities. Hekotek was founded in 1992 by Finnish wood processing specialists and is now the largest Baltic manufacturer of sawmill and bioenergy sector equipment. Hekotek is a part of Lifco Group, an international concern based on Swedish capital assets. More information is available at www.hekotek.com .
About RusForest AB
RusForest is a Swedish forestry company operating in Eastern Siberia. The Company controls long-term timber leases and utilizes these resources to produce a wide range of sawnwood products. RusForest is listed on NASDAQ OMX Stockholm First North (ticker “RUSF”).
RusForest AB's Certified Adviser on First North is Pareto Securities AB.
For additional information, please visit the Company’s website at www.rusforest.com or contact:
Gustav Wetterling, CFO, telephone: +46 8 771 85 00
