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Japanese investor plans to recycle waste wood processing industries in Yakutia


With the assistance of the Far East Investment Promotion and Export Support Agency (ANO API), the delegation of the Japanese company IREX (EREX Co., Ltd), headed by the executive director and president of the company Hitoshi Honna, visited the Republic of Sakha (Yakutia), held negotiations with government representatives region and Yakut woodworking companies. 

As Valery Smirnov, senior specialist of the investment projects department of ANO IPA, explained, Ireks plans to launch pellet production in the Far East and is now considering the location for the future enterprise. To produce pellets, it is planned to use the waste from woodworking enterprises from several regions. The total investment in the project will be 6 billion rubles (95 million US dollars). pellets are planned to be exported to Japan in order to close the need for power plants operated by IREX. 

“We need to calculate the logistics, understand where the localization of production will be, which coastal companies can become partners of Japanese investors. Representatives of the company have already held negotiations in the Primorsky and Khabarovsk Territories, Amur Region. Our Agency provides project support. This is an acquaintance with existing production facilities, negotiations with regional authorities, discussion of the prerequisites for launching a project, ”Valery Smirnov explained.  

Representatives of the IREX company met with the Chairman of the Government of Yakutia Vladimir Solodov, the Minister of Economy of Yakutia Maya Danilova, the Minister of Industry and Geology of Yakutia Maxim Tereshchenko, the management of LLC LPK ALMAS and LLC Yakutskiye pelletov. 

“Japanese investors plan to consume up to 2 million tons of fuel pellets per year. At the same time, two Yakut enterprises, with whose leadership negotiations were held, can supply about 160 thousand tons of raw materials. However, they are interested in working with regional companies that they want to involve in the development of a feasibility study. We believe that this interaction could lead to the launch of a modern timber processing complex in Yakutia, ”commented Alexander Kondrashin, head of the Investment Development Agency of Yakutia. 

According to him, “the arrival of a strategic Japanese investor in timber processing fits into the general outline of the active participation of Japanese companies in unlocking the investment potential of Yakutia. He noted that with the participation of Hokkaido Corporation in the Kanlagassi IP TOP, two phases of the year-round greenhouse complex were built, and now the launch of the third stage is being discussed, a testing ground for Bridgestone tire extreme testing has been opened in Tiksi with the participation of Komaihaltec Inc. Arctic wind farm launched. “All projects involving Japanese companies are personally accompanied by the head of Yakutia,” Alexander Kondrashin emphasized. 

The delegation of the Japanese company is accompanied by the director of the Russian-Japanese platform, Alexei Khachai. This platform to support Japanese investment in the Far East was created in March 2018. Its founders were the Bank of Japan for International Cooperation (JBIC), the Far East Investment Promotion and Export Support Agency and the Far East Development Fund (FRDV). The main objectives of the platform are to attract Japanese investors to the ASEZ and the free port of Vladivostok, to facilitate and accompany investors from the moment of making an investment decision until the project launch. As noted by Alexei Khachai, during the meeting the question was raised of the possible assistance of JBIC in the implementation of the joint project of IREX and timber processing companies LPK ALMAS and LLC Yakutskiye fuel granules.

IREX is Japan's largest biofuel-based power generation company. The President and CEO is Mr. Hitoshi Honna. The company was founded in 1999 and is based in Tokyo, Japan. The main activity is the electric power industry (power supply, wholesale and retail). As of March 31, 2018, the authorized capital amounted to 5,167 million Japanese yen (approximately 2,779 million rubles).

Information provided by the press service of the Far East Investment Promotion and Export Support Agency



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