A leading Japanese real estate development firm says it is buying a majority stake in a Russian lumber producer. This comes as a global shortage has sent wood prices soaring. Source: NHK
Iida Group Holdings announced it will acquire 75% of Russia Forest Products for nearly US$530 million dollars. The company says the acquisition will give it access to one of the world’s largest forests, spanning roughly four million hectares in the Russian Far East.
It says this timber can be transported to Japan in around just three days.
Soaring demand in the United States and elsewhere has led to a global lumber shortage. Iida Group’s Senior Managing Director Tomishima Hiroshi says the takeover will help his company weather this situation by ensuring a stable, long-term supply of quality material.
