Russia-China Investment Fund Acquired Stake in RFP Group
OREANDA-NEWS. March 25, 2013. Russia-China Investment Fund acquired a stake in RFP Group in a deal worth USD110 million. RFP Group co-owner is Roman Abramovich with a share stake of 33%, according to Vedomosti.
RFP Group is the second largest timber company in Russia. Since 2009, the RFP Group creates a set of deep wood processing in the Far East, Russia. RFP Group plans to start-up pulp and paper mill with a capacity of 700,000 tons of pulp per year by 2018.
“RFP Group holds second place in terms of logging in Russia. Most of wood products made in the Russian Far East are exported to China and Japan. China Investment Сorporation attraction to the project ensures distribution and even preferences compared with other suppliers to the Chinese market. In Russia, a weak demand for lumber in the fact that we have no affordable wooden houses, such as in Canada or the United States,” said Alexey Bogatyrev, CEO of Lesprom Network.
In addition, he points out that for Abramovich his shareholding in the RFP Group means diversification business in primary industries. This is one of the most stable segment and there is no risk of overproduction.
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