RusForest AB Has Recorded a Third-Quarter Net Loss of SKr77.5m

Russian forest products group RusForest AB has recorded a third-quarter net loss of SKr77.5m (2010: SKr-65m). The company, which has blazed an acquisition trail in recent years, blamed the losse on on low capacity utilisation and start-up problems in its sawmilling business, mainly at the Magistralny sawmill in Siberia. Heavy investment during the period included SKr47.7m on new harvesting and road construction equipment. Sawmill operators at Magistralny are still in training rather than involved in full production, while equipment defects have also been experienced. Capacity will finally be increased during the fourth quarter. "But utilising the forest leases and roads better we will increase our log supplies and the effect will also be seen in the sawmills from the first quarter of 2012, " it said. RusForest said progress had also been slowed down by weaker markets. The group also operates swmills at Boguchany and Shenkursk, while it is looking at reconstructing the LDK-3 mill in Arkhanglesk. Group sales in the third quarter reached SKr115.6m (2010: SKr66.6m). Source: ttjonline.com