Sortavala Timber Mill and Zapkarelles become part of Bazalt Investment Group

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.