We invite an investor for a joint business for the harvesting and sale of roundwood in Russia

Scheme of work:
1) Purchase of the right to deforestation in a certain area from the state at an open auction.
2) Hiring specialized lumberjack teams.
3) Logging and sorting of forests for various types of products (coniferous logs, balances, fancier, hardwood logs, technical raw materials)
4) Sale of sorted timber from the felling site.

Profitability of work of one team of lumberjacks

  • Purchase of 1m3 of wood at auction – 5 US dollars;
  • Felling and sorting of forests – 10 US dollars;
  • Total for 1m3 – 15 US dollars;
  • Technical raw materials (not high-quality wood) – 60%;
  • Logs (high-quality forest) – 40%;
  • Sale of 1m3 of technical raw materials – 14 US dollars;
  • Sale of 1m3 of logs – 50 US dollars;
  • Selling 1m3 weighted average price – 32 US dollars;
  • Losses during processing – 20%;
  • The sale price of 1m3 after accounting for losses is – 22 US dollars;
  • Profit from 1m3  –  7 US dollars  –  or 45%;
  • Labor productivity – 1 200m3 per month;

Profit from one team (lumberjacks) – $ 8 300 per month

At the initial stage, work is carried out by one team of lumberjacks. In the future, work is carried out simultaneously by 2 – 5 teams, as agreed with the investor.
The monthly costs of servicing a business when working with 1 – 3 teams (office, expert evaluation of auction lots, control of the production process, accounting of finished products, sales, accounting expenses) amount to 3 000 US dollars.
Taxation is carried out at a rate of 15% of the difference between income and expenses.
Investments for the launch of the project for 2 teams of lumberjacks are 200 000 USD.
Investments for the launch of the project for 3 teams of lumberjacks amount to 300 000 USD.

Investor protection

· The investor is the main founder of the newly created company;
· The investor is the director of the company;
· Only an investor can transfer money from the company’s current account;
· Only the investor signs documents on the transfer of products to customers;
· The purchase of a site for deforestation is made by the investor by direct payment to the state.

Investor requirements

· The desire to build a long-term and growing business
· Ability to make quick but thoughtful decisions
· The ability to make current payments (auction, office expenses, taxes) without violating the schedule
Sociability, the ability to be in touch
· The possibility of arriving in Russia and starting a business no more than two months after sending your application to us

We apologize in advance, but our company reserves the right to refuse to consider applications from potential investors, without explanation.

Business development prospects

· Processing of waste and part of technical raw materials into wood chips or coal at the place of cutting (not earlier than 6 months from the start of the business) + 15% profitability.
· Forest lease of 10 000 – 50 000 hectares for 49 years from the state (not earlier than 9 months from the start of the business) – a reduction in the cost of 1m3 of raw materials by 30%.
· Launch of our own production of primary processing of wood into boards and timber (not earlier than 1 year from the date of launching the business) – added value up to 25% for final products.
· Export of processed products (not earlier than 1.5 years from the start of the business) – selling price + 10% of finished products.

Please write us a letter with a short story about yourself and your proposal for a joint business.

Close Menu