Russia-China Investment Fund (RCIF) has completed the acquisition of a 42% stake in RFP Group (Russian forest products group).
RCIF’s investment in the company will support the construction of the “Centre for deep wood processing”, the biggest in the region.
The investment by RCIF supports the company’s strategy to further develop high value-added wood processing. The company recently commenced operations of a new manufacturing facility with production of premium larch veneer for the Japanese and Chinese markets. Furthermore, the company will utilize financing from shareholders, as well as debt financing, to construct a sawnwood plant scheduled to launch in the beginning of 2015. In total these two plants have the processing capacity of up to one million cubic meters a year.
Kirill Dmitriev, CEO of the Russian Direct Investment Fund (RDIF), Co-CEO of the Russia-China Investment Fund (RCIF), says: “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.”
Hu Bing, Co-CEO of the Russia-China Investment Fund (RCIF), says: “Investment in the forestry industry of the Far East fits well with the fund’s strategy to generate strong returns. RCIF is also committed to improve RFP Group’s operation, financing, and corporate governance. Both economies of Russia and China may benefit from cross-border synergies created by RCIF’s investment.”