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Wood processing and wood pellet production complex for sale

The Plant - is one of the biggest advanced technology wasteless wood processing complex in Ukraine with a full cycle of wood processing (sawmill) and production of wood pellets - alternative source of energy. The Plant was set into operation in 2008.

The Plant operates modem production equipment from Germany, Netherlands and Italy. Production capacities enable the Plant to process 180,000 cum of timber (logs) per annum with an output of 99.000 cum. of sawn timber (boards) and 44,500 tons of wood pellets.

The Plant is located on a 3.22 ha land plot in Odessa region, Ukraine on a distance of 20 km from Odessa Black Sea port and "Yuzhniy" Black Sea port. Such favourable location allows the Plant to form large-scale cargo shipload lots on its territory and to ship sawn timber and pellets by sea to Europe; Northern Africa and the Mediterranean.

Absence of dependence on one single forestry allows the Plant to be flexible in terms of raw materials supply and to acquire timber with required quality at competitive price from a wide range of suppliers.

Sawmill line operating on the Plant jointly with the pellet production equipment represents an in-house supply of raw materials and provides for an own and stable supply of high quality and clean sawdust for pellet production in order to qualify for a highest quality of the end product.

Estimated key financials of the Plant operating with 100% load (year 3, according to conservative business plan):

  • Net Sales: USD 19.2 mln.
  • EBITDA: USD 7.3 mln.
  • Net Income USD 5.4 mln.

Key Facts about the Plant

The Plant on sale is an advanced technology production complex set into operation in 2008 comprising of:

  • Sawmill plant with a production capacity of 99,000 cu.m. of sawn timber (boards) per annum. Major production units of the sawmill plant are: sawmill line Giga03 manufactured by A.Costa Righi (Italy/Germany) and edge-cutting automatic machines manufactured by Paul (Germany).
  • Pellet production plant with a production capacity of 44,544 tons of wood pellets per annum. Major production unit of the sawmill plant is wood pellet production equipment manufactured by CPM EUROPE (Netherlands) with an output production capacity of 6 tons of pellets per hour.

The Plant is the largest sawmill and pellet production complex in Ukraine in terms of production capacity.

The Plant's 31% gross margin on sawn timber, which is higher than the market average in Ukraine, gives the Plant bigger flexibility in setting sales prices for sawn timber allows the Plant to set dumping prices on sawn timber and to receive production orders for sawn timber even on a flat market, thereby providing stable supply and required volume of sawdust for pellet production. Other pellet manufacturers with no in-house supply of sawdust cannot provide neither quality of pellets, nor stable operation of pellet production.

The Plant benefits from utilization of wasteless technology - the cost to transport timber from forestries to the Plant is virtually equal to the cost to transport sawn timber and pellets, produced elsewhere from the same volume of timber.

The Plant dispatched pellets by railroad to Eastern Europe and Western Europe, and dispatched sawn timber by sea to Turkey, Greece and Italy. A number of dry-runs of sunflower husks pelleting were made by the Plant. Significant volumes of sunflower husks are available from Bunge, ADM and Cargill sunflower oil processing plants located close to the Plant in lllichevsk, Odessa and Mykolayiv.

The Plant produces DIN 15137 wood pellets with diameter of 8 mm.

The Plant requires appr. 110 employees in order to operate pellet production in 3 shifts and sawmill in 2 shifts.

Major location advantages

The Plant is located in Odessa region, Ukraine near the Black Sea ports. Close location to big cargo railway station, which is directly connected to the Plant by branch railroad line, owned by the Plant, guaranties stable supply of timber from Ukrainian forestries and flexibility of raw materials purchases. Cargo railway network covers all regions in Ukraine, where major potential suppliers of coniferous forest are located (appr. 200 forestries}.

Proximity to the Black Sea ports allows the Company to export sawn timber and pellets by sea to Europe, Northern Africa, Mediterranean and Middle East counties.

The Plant is specially equipped to load pellets in bulk into hopper carriages and into containers.

Capacity of sawn timber warehouse (area of 1,500 sq.m) and railway line on the territory of the Plant (length of 200 metres) allows the Plant to form large-scale cargo shipload lots of sawn timber and pellets in order to make dispatches in containers or hopper carriages by sea or by railway. Equidistant location of the Plant in relation to major forest regions of Ukraine, as well as independence from anyone single forestry, allows the Plant to be flexible in terms of raw materials supply and to acquire timber of required quality at competitive prices from a wide range of suppliers.

The Plant has preliminary arrangements on timber supply with a number of Ukrainian forestries in volumes exceeding required amount and at prices lower than respective parameters used in the current business plan.

All interested parties are invited to negotiations regarding buying the Plant.

  • Views: 9774
  •   Added: 10-08-2010   
  •   Updated: 10-08-2010   
  • Country: Ukraine
    City: Odessa
    Languages spoken: English, Russian
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    Wood processing and wood pellet production complex for sale

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