Russia-China Investment Fund to acquire forests products group

By Marc Castro

Oct 18, 2013 10:41 AM EDT

The Russia-China Investment Fund had announced the completion of an acquisition of an approximately 42% stake in RFP Group, a leading forestry holding firm in the Far Eastern region of Russia. The Russian forest products group would be providing support for the construction of the "Center for Deep Wood Processing", which would be biggest facility in the region.

The investment by the fund is in lin with the company's strategy of further developing high value added wood processing. The company had recently started the operations of a new manufacturing facility with the ability to produce premium larch veneer for the Japanese and Chinese consumer market. 

Another plan of the company would be utilizing the financing from shareholders as well as debt financing to construct a sawnwood plant scheduled to begin by 2015. In total, the two plants would have a processing capacity of one million cubic meters per year.

According to Russian Direct Investment Fund CEO and co-CEO of the Russia-China Investment Fund Kirill Dmitriev, "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."

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