Iida Group Holdings, a major housing maker, has announced that it will acquire a Russian company that owns one of the world's largest forests.
The aim is to procure high-quality timber in a stable manner amid the continuing impact of the "wood shock," which is the shortage of timber worldwide.
Iida Group Holdings, a major detached house sales company, announced that the two companies have agreed to acquire a 75% stake in Russia Forest Products, a company that produces and processes timber in Russia.
The total purchase price is expected to reach approximately 60 billion yen.
The Russian company owns about 4 million hectares of forest in the Russian Far East, which exceeds the area of Kyushu, and can transport timber to Japan in about three days.
With regard to timber, the so-called "wood shock", in which the price of timber soars due to a global shortage of timber due to the rapid increase in demand in the United States and other countries, continues.
The company aims to procure high-quality timber in a stable manner by acquiring the management rights of a company that owns the world's top-class large-scale forests and is engaged in the production and processing of timber.
Hiroshi Tomishima, Managing Executive Officer of Iida Group Holdings, said at a press conference, "It is significant that this acquisition can respond to situations such as wood shocks and that we can procure high-quality timber in a close area for a long period of time and stably." Said.