Segezha to build cluster in China in 2026 to produce, sell packaging, plywood, lumber

MOSCOW. Dec 23 (Interfax) - 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.