Offer to the investor
Total project cost: 935 mln RUB
Capital planned to be raised: 350 mln RUB and above
Investment purposes: organization of the wood polymer composite production
Available investment options: any possible investment options will be considered
Internal rate of return (IRR): 23%
Planned payback period: 6 years including construction period
Krasnoyarsk Region is one of the most forest-abundant regions of Russia. The forest fund territory of the region covers 158.7 mln ha. The total stock of vegetation of 11.7 billion cubic meters constitutes 34% of the total stock of the Siberian Federal District and 14.2% of the overall Russian wood resources. Forest industry is one of the most profitable industry branches of Krasnoyarsk Region. Around 7 mln m3 of forest industry wastes are produced in the region every year. The wastes are accumulated in the south, close to the wood processing sites.
The wood polymer composite production of Russia is concentrated in the European part of the country, and its production volume is growing at CAGR of 13%. There is no regional production in the potential markets of the Siberian and Ural Federal Districts. In the year 2019, a sudden leap in the wood and polymer composite demand in the Russian Federation market was registered, which caused a doubling of the import and growth of prices by 30%. Current demand in Siberian Federal District comprises 700 thousand m3 per year and 300 thousand m3 per year in Ural Federal District.
The project suggests the organization of production from wood polymer composite, including terrace boards, facade beams and WPC steps.
If the project is approved for implementation, the production site may be installed practically in any location in Krasnoyarsk Region. However, from the logistics point of view, the most efficient solution would be a territory in the south of Krasnoyarsk Region, near a wood processing complex and Siberian Polymers granule manufacturer in the town of Sosnovoborsk.
At the moment, the project is at the idea stage. The wood polymer composite production flowchart has been developed, the main sources of raw materials have been assigned, the basic financial parameters and the product sales channels have been identified.
Depending on the sufficiency of the assets and finance owned by the investor, Yenisey Siberia Development Corporation may offer the best fitting project financing plan involving the governmental financial support options.
The project was developed by Strategy Partners group with the support of Sberbank.