As part of the national Labour Productivity project, the company’s management plans to improve processes within the pilot production flow and subsequently apply the lean manufacturing practices gained to other areas of the mill.

The sawn timber production process was selected as the pilot flow. The mill’s working group, together with an expert from the Federal Competence Centre, has completed training in lean manufacturing tools and finished the diagnostic phase. The team mapped the value stream, identified areas for improvement, developed an action plan and is now implementing it at the production site.

The work focuses on improving the production process itself, organising warehouse storage and establishing an efficient finished-product inventory system.

In addition, Head of Production Aleksei Zenonovich Mikhnovich and Chief Power Engineer Andrei Valeryevich Zabrodin completed lean manufacturing training to qualify as the company’s in-house trainers.

Container shipments often include a sea leg. In such cases, containers are delivered to the port either by rail or, as in our operations, by road along the route from Rautakangas, Sortavala, to the Port of St Petersburg.

One of the mandatory requirements for maritime container transport is confirmation of the Verified Gross Mass (VGM), which certifies the actual gross mass of a packed container.

Verification became mandatory for maritime container transport on 1 July 2016, when amendments to the International Convention for the Safety of Life at Sea (SOLAS) entered into force.

The purpose of VGM verification is to provide an officially confirmed gross mass of the packed container. This information is required for correct vessel stowage planning and helps prevent accidents during transportation.

In December 2023, Sortavala Timber Mill successfully completed an audit by the Russian Maritime Register of Shipping and received a Recognition Certificate (VGM RC).

The certificate confirms the company’s competence to independently verify the gross mass of packed containers in accordance with IMO Resolution MSC.380(94). The mill has all the modern weighing equipment required for this purpose.

Recognition Certificate No. 23.47.01.12328.120 is valid from 22 December 2023 to 22 December 2026.

A further modernisation of the sawmilling line was completed in November 2023.

The upgrade included the installation of feed augers with a top-end log alignment function and a device for singulating logs before they enter the line.

As a result, the productivity of the sawmilling line increased by 5–30%, depending on the length of the sawlogs.

On 12 April 2023, a transaction was completed through which Sortavala Timber Mill LLC and Zapkarelles JSC became part of the asset portfolio of Bazalt Investment Group, which owns RK-Grand LLC, a pulp mill in Pitkyaranta.

The Pitkyaranta pulp mill, operated by RK-Grand LLC, is a leading producer of high-quality speciality-grade pulp for electrical insulation and fibre cement applications in the Republic of Karelia, with an annual output of approximately 110,000 tonnes.

Sortavala Timber Mill LLC is a modern wood-processing enterprise with an integrated production cycle, equipped with state-of-the-art machinery for the production of high-quality edged sawn timber.

Zapkarelles JSC is one of the largest integrated timber harvesting companies in the Republic of Karelia and leases around 10% of the Republic’s total forest fund.

The partnership between the companies brought together within the Group will ensure the integrated use of the timber resource base and help maintain high levels of timber harvesting and processing even during periods of crisis. Over time, sharing expertise and combining efforts in production, sales and logistics will generate synergies and improve operational efficiency.

The competition was organised by the Ministry of Economic Development of the Republic of Karelia. The award ceremony took place in the assembly hall of Petrozavodsk State University.

The competition was open to small and medium-sized enterprises that had been operating in the Republic of Karelia for at least one year. A total of 63 applications were submitted from 12 districts and two cities across the Republic.

Sortavala Timber Mill received the award in the “Best Manufacturing Enterprise in Karelia” category. The diploma and commemorative award were presented by Acting Minister of Economic Development of the Republic of Karelia Evgeny Zhirnel.

As part of a fact-finding visit with representatives of the business community of the Southern Ladoga area, Artur Parfenchikov visited Sortavala Timber Mill. General Director Roman Aleshin spoke about the mill and its plans for the future.

“In 2016, the mill produced 38,500 cubic metres of finished sawn timber. Output was forecast to increase to 40,000 cubic metres in 2017, although this would still represent only 45% of the mill’s potential capacity. The company employs 60 people, primarily residents of the Sortavala District, and the average age of its employees does not exceed 30. The mill is currently implementing an investment project to construct a kiln-drying complex. The project is intended to expand the markets for finished products, create additional jobs and increase tax revenues,” Roman Aleshin said.

Acting Head of the Republic of Karelia Artur Parfenchikov noted the competitiveness of the mill’s products. He also emphasised that the waste-free production model being introduced at the mill was precisely the type of operation that the President of Russia had instructed the region to develop during his visit to the Republic of Karelia in July 2017. The parties also discussed issues concerning access to raw materials and the mill’s plans for the future.

Construction of three facilities is currently under way at the mill: BaltBrand drying kilns, an AGRO Forst boiler house and a dry sawn timber sorting shop.

The construction project is intended to expand and modernise production and create the necessary conditions for further timber processing.

BaltBrand drying kilns

The first stage will include the commissioning of four drying kilns, each with a capacity of 150 cubic metres of timber.

The drying process is fully automated, with the specified parameters monitored and maintained automatically. The modern control system develops an optimal drying schedule in accordance with production requirements and enables continuous monitoring of the equipment. Using dedicated software, the operator can monitor the entire drying process inside each kiln on a computer screen.

AGRO Forst boiler house

The boiler house supplied by the renowned European manufacturer provides all the heat required by the drying kilns. It uses production residues as fuel, including bark and residues from roundwood processing.

This solution makes it possible to utilise production residues while supporting more environmentally responsible operations. It also helps reduce the cost of producing the mill’s finished products.

Dry sawn timber sorting shop

After drying, each batch of dry sawn timber is sent for sorting. The kiln packs are dismantled, and the stickers between the layers and the spacers between the packs are removed.

The dry edged boards are end-trimmed, graded, checked using dimensional measuring equipment and distributed into designated sorting bins. The sawn timber is then assembled by an automated stacking machine into compact transport packs, wrapped in film, strapped and transferred to the finished-goods warehouse.

On 23 December 2016, in the run-up to the New Year, Karelia traditionally honoured its Laureates of the Year — outstanding representatives of various professions, institutions and companies who had made a significant personal contribution to the development of the region.

Sortavala Timber Mill Head of Production Roman Mikhailovich Zaitsev was awarded the title “2016 Laureate” for his significant personal contribution to the development of the timber industry in the Republic of Karelia, the expansion and modernisation of production, and the creation of new jobs. The diploma and commemorative badge were presented by Head of the Republic of Karelia Alexander Khudilainen.

The 2016 list of laureates included 49 residents of Karelia who had achieved outstanding results in their professional fields. Over many years, they have contributed to the Republic’s history through their knowledge, professionalism, experience and expertise.

Speaking at the award ceremony, Head of the Republic of Karelia Alexander Khudilainen noted that the dedication and hard work of the region’s residents were helping Karelia achieve positive results in both its socioeconomic development and public life.

A new administrative office building has been constructed and commissioned on the mill’s premises at 8 Rautakangas Settlement.

Implementation of an investment project to construct a kiln-drying complex has begun.

Supply contracts have been signed for a wood-waste-fired boiler house manufactured by the Austrian company AGRO Forst & Energietechnik GmbH and four drying kilns manufactured by the Latvian company BaltBrand.

Preliminary earthworks and foundation construction are scheduled for completion by the end of 2016, followed by equipment installation by May 2017. The kiln-drying complex is scheduled to be commissioned in June 2017. The total investment will amount to approximately RUB 100 million.

On 2 December 2015, Sortavala Timber Mill LLC obtained Forest Stewardship Council® certification (FSC License Code: FSC-C127463), thereby confirming the company’s commitment to strengthening its environmental and social responsibility in the procurement of raw materials.