LONDON (Alliance News) - Active Energy Group PLC Friday said it is aware of "market speculation" surrounding a new law passed in Ukraine that will ban the export of unprocessed wood from the country, and said it will benefit from any such law.
The industrial wood chip and forestry development service company said the new law, which was passed on July 8 according to the company, stipulates a 10-year ban on the export of unprocessed wood including raw wood, such as roundwood in the form of logs and poles.
Active said it is the "largest producer and exporter" of processed wood in the country, and therefore the new law will not impact any of its operations.
The company went further and said the new law concerning unprocessed wood will "enhance the group's profile in the country" as the law is intended to create new jobs within the wood-processing industry, conserve the country's forestry assets, prevent illegal logging and to increase export revenues.
"It may also present new supply, logistics and shipping opportunities for Active Energy Group, which sources all of its raw timber, primarily waste wood and forestry thinnings, from the official Ukraine State Agency of Forestry Resources," said Active.
Active Energy said it Ukrainian wood chip operations generated USD17.4 million in revenue in 2014, which was an eleven-fold increase from 2013.
Active Energy shares were up 3.8% to 6.74 pence per share on Friday morning.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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Active Energy (AEG)