Period of completion
- Project’s geography Russia
The wood processing company United Panel Group (hereafter UPG) was founded in 1999 and produces various types of wood-based panels for furniture, construction and other industries under one brand name. The group consists of three production sites in the Komi Republic, Kirov Region and the Republic of Udmurtia. The company exports to 50 countries in Europe, Asia and America. In 2020, it produced 289 thousand cubic metres of products. The project is aimed at the financial recovery of the company, which is one of the top 5 manufacturers of white and laminated plywood and MDF in Russia. The company had been in bankruptcy several times since 2009, experiencing a shortage of working capital and being one of the most inefficient companies in the industry. PCG has become one of the largest shareholders of the company since December 2014 and has implemented so far the following:
- Agreement with creditors on a settlement agreement.
- Attracting financing from banks to refinance the debt under the settlement agreement.
- Creation of a new management team.
- Altering corporate governance principles, cost and business processes optimization.
- Installation of new equipment and the modernisation of existing equipment.
- Zheshartsky Plywood Factory (the Komi Republic), part of UPG, is one of the top three exporters of Russian plywood to Europe.