Segezha Group includes modern converting facilities producing paper sacks for industrial needs and consumer packaging. The production capacities of the packaging business are represented by 10 plants, with 7 of them located in Europe and Turkey , and 3 — in Russia. In 2021, the company opened its R&D center in Karelia to develop and test innovative packaging solutions. The output increased by 10.6% year-on-year to 1,428 mn units thanks to the implementation of the investment programme to expand capacities. Segezha Group sold 1,445.6 mn paper sacks, up 11.0% from the previous year, due to the development of the consumer packaging segment.
Segezha Group produces high-quality sawn softwood timber at high-tech factories in Siberia and the north-west of Russia, and exports almost 100% of its sawn timber to dozens of countries, with most volumes consumed by construction companies and producers of furniture and packaging. The main markets for the company’s sawn timber are China, Europe and MENA. In 2021, sawn timber output was 1,2 mn cu m, while revenue of the forestry and woodworking segment totaled RUB 29 bn, an increase of 30.4% from 2020.
The production of biofuels from logging and timber sawmill by-products is one of the important areas of Segezha Group's environmental policy and business sustainability. The production of pellets and fuel briquettes at its plants allows the company to optimise the utilisation of wood, reduce waste disposal, increase the depth of processing of raw materials, improve the environment and generate extra income by offering demanded products. Bark and wood waste serve as a renewable energy source for the company's own and third party consumers' needs. Segezha Group facilities produce and supply heat energy for settlements in the regions of operations. Since 2019, the largest boiler station in Russia's Northwest, running on bark and timber waste, supplies heat to Onega Sawmills and the population of Onega, located in Arkhangelsk region.
Segezha Group produces 77% of Russia’s sack paper output at 2 pulp & paper mills. About 40% of the paper output is supplied to the Group’s facilities in Russia and Europe to manufacture paper sacks and bags, and the remaining 60% is sold in Russia or exported. The share of exports in sales exceeds 90%, and geography of supply is 78 countries. The main export markets for Segezha Group are China, Latin America, Southeast Asia, North Africa, the Middle East, and also Europe. In 2021, Segezha Group’s paper output was 369,400 tonnes.
Most of the plywood produced by Segezha Group is made for exports (80% of the output in 2021. Plywood is supplied to more than 50 countries, the key export markets being Europe, the United States, Canada and Asia Pacific, including China, South Korea and India. In 2021, the plywood output increased by 2.2%, to 196,300 cu m, while revenue of this business segment totaled RUB 12.5 bn, an increase of 63.6% from 2020.
Segezha Group produces laminated wood structures and prefabricated glulam houses, and also designs and builds wooden houses from glued laminated timber. In 2021, the first plant in Russia for the large-scale industrial production of CLT panels with a capacity of 50,000 cu m per year was put into operation. CLT panels are cross-laminated timber building materials with excellent physical, mechanical and thermal insulation properties, which have the same strength as such traditional construction materials as concrete, steel and brick, but are superior in terms of production costs, eco friendliness and ease of maintenance. CLT panels open up ample opportunities for the construction of properties that are diverse in terms of their functionality as well as the visual and technological solutions used. In 2021, revenue of Segezha Group in prefabricated houses segment totaled RUB 6.2 bn, an increase of 54.4% from 2020. This growth was driven by higher output and sales, in particular due to the start of production of CLT panels. In 2022, the construction of the first multi-storey buildings from CLT began in Vologda region.
Since 2020, Segezha Group has integrated Giprobum engineering institute, developing complete design documentation in the field of industrial construction. Giprobum has over 90 years of experience in project development of new, as well as the reconstruction and re-profiling of the existing production facilities. Today, the Institute is one of the leaders in the Russian market for the design and engineering for pulp and paper industry.