Monday, December 15, 2025
The shift towards a circular economy and demand for sustainable heating are changing strategies in the birch plywood industry. Leading this transition is Sveza Group, which has underscored its commitment to resource efficiency by dramatically scaling up its bioproduct output from wood waste.
Sveza’s dedicated bioproduct division, Sveza Bioproduct, has successfully finalised a significant equipment modernisation project at its St. Petersburg facility, which operates alongside its primary plywood mill. This strategic investment, valued at ₽21 million (Ruble), was specifically aimed at expanding the production capacity of high-quality fuel briquettes made exclusively from 100% birch wood waste, a byproduct of the plywood manufacturing process.
The investment project has yielded immediate and impressive results. Following the commissioning of the upgraded equipment, the facility’s monthly production capacity has surged from an initial 46 tons to an outstanding 234 tons. This represents a more than fivefold increase in output, positioning the St. Petersburg site as a critical local supplier in the rapidly growing Russian biofuel market.
The decision to invest was driven by persistently high and increasing customer demand for these birch fuel briquettes. Over several years, Sveza’s briquettes have established themselves as a sought-after alternative to traditional heating fuels, valued for their high calorific value, clean burn, and environmental profile.
The necessity of the upgrade became evident in the escalating sales figures recorded throughout the autumn of 2025. Sergey Korkin, Head of Bioproducts Business at Sveza, noted the aggressive growth trajectory: “Sales have been rising month by month: we shipped 40 tons in August, 78 tons in September, and by October shipments reached 234 tons. Even with increased output, virtually all volumes are dispatched directly to customers without the need for storage.”
This immediate absorption of the increased production volume highlights the robust demand within the domestic market, confirming the strategic merit of the capital expenditure. Looking ahead, the company has set an ambitious target to further ramp up production to 330 tons per month by the end of 2025.
The ₽21 million investment was meticulously allocated to modernise key industrial processes necessary for high-efficiency briquette manufacturing. The core areas of improvement focused on enhancing automation, material handling, and environmental compliance:
Modernisation of the fine-fraction feeding line: Upgrading the system responsible for consistently feeding fine-fraction wood waste (sawdust and shavings from the plywood peeling process) ensures a steady and optimised supply of raw material to the briquetting press. Consistency in feedstock is crucial for producing uniform, high-density briquettes.
Dust suction system upgrade: A significant part of the investment focused on the aspiration and dust suction system. This enhances operational safety by removing combustible fine dust from the air and also improves the working environment, ensuring compliance with strict industrial health standards.
Noise-reduction solutions: Implementing noise-reduction technology is a key factor in modern industrial operations, especially in integrated sites like St. Petersburg, where the bioproduct facility operates alongside the main plywood mill. This modernization contributes to improved working conditions and reduced environmental noise pollution.
The briquettes themselves are produced using a high-pressure mechanical process—likely RUF or Pini-Kay technology—that compresses the birch sawdust without the use of chemical binders. The natural lignin within the wood acts as the binding agent, resulting in a dense, compact, and environmentally friendly fuel source. This closed-loop process effectively turns an unavoidable birch plywood manufacturing waste product into a valuable, marketable green energy source, aligning perfectly with circular economy principles.
A critical component of Sveza Bioproduct’s strategy, particularly following the St. Petersburg expansion, is its explicit focus on the domestic Russian market. The company noted that the newly enhanced capacity of the St. Petersburg site is sufficient to fully supply residents and municipal consumers in the region with biofuel.
In the context of the wider energy landscape, biomass fuels, including wood briquettes, serve an important function in diversifying regional energy sources. By utilising domestically produced waste from the highly specialised birch plywood sector, Sveza is helping to strengthen the Russian timber industry’s self-sufficiency and creating a reliable, local supply chain for heating fuel.
The success of the bioproduct division not only adds a new revenue stream but also demonstrates exemplary industrial synergy. It confirms that maximising resource utilisation is a key competitive advantage in the modern woodworking industry, transforming waste disposal costs into profitable, value-added products that benefit both the company’s financial bottom line and the regional energy transition efforts.
The planned target of 330 tons per month by the end of 2025 indicates that Sveza Group views the bioproduct market not as a secondary operation, but as an integral, rapidly expanding part of its corporate strategy, ensuring maximum value extraction from every log of sustainably harvested birch wood.
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Tags: biofuel production, birch plywood industry, circular economy, fuel briquettes, industrial modernization, SVEZA Group, wood pellet market, wood waste recycling
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