Russia-China Investment Fund (RCIF) has acquired a 42 per cent stake in Russian forestry holding company RFP Group.
The investment from RCIF, which is backed by state-backed Russian Direct Investment Fund (RDIF) will fund the construction of the biggest wood processing facility in Russia’s Far East.
RFP has recently started operations of a new manufacturing facility, producing larch veneer for the Japanese and Chinese markets.
The company also plans to build a sawnwood plant scheduled to launch in the beginning of 2015.
RFP currently manages 5m hectares of forest with permission to harvest over 4.6m cubic meters annually.
RDIF CEO Kirill Dmitriev said, “We are happy to announce that RCIF has completed the series of investments in RFP Group. It is an important investment in the Far East for a number of reasons but particularly so at the moment, as the region has experienced the worst flooding in over 100 years.
“RCIF’s investment will speed up the introduction and implementation of modern forestry technology and create new jobs. This is a strong economic commitment to the region.”
Earlier this month RDIF partnered with Deutsche Bank to invest in Russia’s largest telecommunications company Rostelecom.
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