The Segezha Group, Russia’s largest forestry and wood‑products company, will now formally establish a manufacturing and logistics cluster in Shanghai’s Lingang Special Economic Zone, a move that marks one of the most significant expansions by the Russian timber giant since the West hit the industry with sanctions in the wake of the Ukraine war.

Segezha Group has signed an agreement with the leadership of the Lingang special economic zone in Shanghai to build a manufacturing and logistics cluster there in 2026.

The Russian forestry company said in a press release that it plans to build converting facilities in the special zone to manufacture consumer packaging, as well as a manufacturing and distribution center for birch plywood and planed products.

The project is intended to expand Segezha's presence in both China and other markets in the Asia-Pacific region, and will reduce logistics costs and simplify international payments, the company said.
 
"Our holding manages colossal forest resources and is prepared to mass export high added-value products. China, meanwhile, has the largest sales market, possibilities to quickly adapt our products for the needs of end customers and modern logistics. Lingang for us is a strategic point of growth in the Asia-Pacific region," Segezha president Kirill Arsentyev said in the press release.

Segezha traditionally exports a substantial share of its products to China. In the first nine months of 2025, the company earned 34% of its total revenue from paper sales, 77% of revenue from lumber sales and 38% of revenue from plywood sales on the Chinese market. Segezha currently sells 92% of its paper packaging in Russia and the remainder in other CIS countries.

Source: interfax.com