VKG terminates major timber supply contract with State Forest Management Centre from 2028 onwards

Viru Keemia Grupp (VKG) has decided to terminate its long-term supply contract with State Forest Management Centre (RMK) for timber purchases starting in 2028. This represents a significant shift in Estonia's forestry industry supply chains.

Viru Keemia Grupp (VKG) has announced that it will terminate its major long-term timber supply contract with State Forest Management Centre (RMK) starting from 2028. This means that one of Estonia's largest energy companies will no longer continue its long-term wood procurement from the state forest manager.

VKG is a conglomerate based in Ida-Virumaa specialising in oil shale processing, which in recent years has expanded its operations into renewable energy and biomass-related sectors. Wood is an important resource for the company's energy production, so the decision to terminate the long-term contract represents a significant strategic move.

RMK manages Estonia's state forests and sells timber to both domestic and international partners. VKG's termination of the major supply contract could affect RMK's revenue base and may require the state forest manager to seek new buyers for the volumes being freed up. Questions also arise about how VKG will cover its future timber needs – whether through purchases from other suppliers, short-term contracts, or alternative strategies.