VMG Group

History

2023: Technonicol bought a plant in Belarus from VMG Group

The Technonikol company, owned by Russian billionaires Sergei Kolesnikov and Igor Rybakov, bought a woodworking enterprise in Borisov (Minsk region, Belarus) from the Lithuanian VMG Group. The perimeter of the transaction, which became known in mid-June 2023, included a sawmill with a capacity of 600 thousand cubic meters. m of processed wood per year, a workshop for the production of up to 120 thousand tons of fuel and wood pellets and up to 24 thousand cubic meters. m of finished products per year.

As Kommersant writes with reference to a representative of the Technonikol company, it is planned to introduce technologies at the purchased enterprise for the production of products of higher redistributions: planed chase products for interior and exterior decoration, glued wooden sets and household units. Investments in the project are planned at the level of €20 million, or about 1.8 billion rubles at the current exchange rate of the Central Bank of the Russian Federation, the company said.

Technonicol bought a woodworking enterprise in Borisov from the Lithuanian VMG Group

The fair value of the business of the Belarusian plant, even taking into account the loss of sales markets in the EU countries, could be about €50 million, but, given the sanctions against Belarus, Lithuanians could sell the asset much cheaper - within €30 million (2.7 billion rubles at the Central Bank rate), said Mikhail Burmistrov, general director of Infoline Analytics. Aleksey Sharov, managing partner of Averta Group, does not exclude that the transaction amount did not exceed 0.5 billion rubles.

The plant will supply finished products to all regions of Belarus. Technonikol plans to establish exports to Uzbekistan, Azerbaijan, Turkey, China and South Korea. While reducing the cost of logistics to the countries of Southeast Asia and India, the company will consider the possibility of deliveries in these areas.

As the company recalled, in 2022 the company entered a new market - woodworking and logging. The enterprise in Borisov is the fifth timber industry enterprise in the company's contour.^[1]

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