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Sveza sums up 9 months’ performance
28 October 2021

Sveza, a world leader in the production of birch plywood, has demonstrated steady growth of main performance indicators in the first nine months of 2021. Plywood output went up by 8% and plywood sales by 7% compared to the same period a year ago.

Sveza Group summarized the results of the first nine months of 2021. The market grew steadily recovering from the pandemic blows of 2020 allowing Sveza to enjoy increased demand domestically and abroad. From January through September 2021, Sveza produced 828,000 m3 of plywood, 8% more than in the first nine months of 2020, and sold 834,000 m3 (+7% vs Jan-Sep 2020).

Since the beginning of 2021, sales to end customers have increased dramatically, and totaled 27% as at the end of September, an increase by 10 p.p. compared to the same period a year ago.

Products Sveza’s customers bought most often were laminated plywood for passenger transport and laminated water resistant plywood for making slab formwork. Customers also bought more plywood for use in the transport and storage of liquefied natural gas. Sveza is the only Russian and one of just four plywood producers in the world fully certified under GTT’s relevant certification systems (GTT is an engineering company specializing in containment systems for the shipping and storage in cryogenic conditions of LNG). This July, Sveza’s mill in St. Petersburg produced 3,500 m3 of SVEZA Gas plywood, which is a new production record.

Sveza’s investment performance also meets the targets. As at the end of September 2021, Sveza completed around 40 investment projects and spent on investments around 2 billion rubles. The largest investment spending items were the last construction stage of Sveza’s R&D Center, in-house logging projects in the Perm and Vologda Regions, technical modernization of plywood mills, and projects to set up production of new products such as Maxi Size plywood.

In 2021, Sveza was included for the first time in the ESG Ranking of Russian Companies compiled by an independent EU Credit Rating Agency RAEX-Europe, which means that Sveza meets the main criteria in sustainable development. The ESG Ranking was last updated in September and expanded to include 145 Russian companies across more than 30 industries. Sveza again made it to top three forest industry companies and was placed on the 58th position in the overall rating.

“In spite of the financial challenges of Q3, Sveza has demonstrated robust growth, increased production, and kept offering its customers the best quality products and the best customer service. We have implemented differentiated sales channels, boosted sales to end customers, and keep successfully selling plywood via E-commerce. Of no less importance is our progress in developing new unique products for our customers. I hope, the share of such products in Sveza’s portfolio will continue to increase”, says CEO Anatoly Frishman.