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Fagus Slovenica

Kočevska Reka is becoming a new European hub for high-tech processing of beech wood.

In Kočevska Reka, one of the most significant projects in the modern Slovenian wood-processing industry is underway. Fagus Slovenica, as part of the Slovenian State Forests Group strategy, is constructing a new, energy self-sufficient wood-processing complex specialized in beech wood processing. The project, valued at around EUR 50 million, will enable the annual processing of approximately 100,000 cubic meters of beech logs by 2027.

 

The investment responds to structural changes in Slovenian forests, where the volume of beech has increased by more than 60% over the past two decades, while domestic processing capacities have not kept pace. The new technology will more than double productivity per employee and significantly increase the added value of production, which until now has been well below the Slovenian industry average.

 

The complex will be based on an automated sawmill line and its own wood biomass cogeneration, providing electricity and thermal energy for plant operations. Financing has been provided by Slovenian State Forests together with SID Bank and UniCredit Bank. In addition to its role as a financier, SID Bank also acted as insurer, covering the internationalization loan provided to Fagus Slovenica by UniCredit Bank.

 

The project represents a shift from raw material export to creating higher added value domestically and lays new foundations for a competitive and sustainable future for the Slovenian wood industry.

 

Rok Rutar, Director of Fagus Slovenica: “We chose SID Bank not only because it is a Slovenian bank, but primarily due to favorable interest rates, very fast and responsive service, and flexibility in handling our case. Despite the extremely short timeframe for financing, the process was conducted professionally and efficiently, and very competitive and advantageous financing terms were offered. For these reasons, we would gladly recommend SID Bank to other companies as well.”

We would gladly recommend SID Bank to other companies as well.

Image Gallery

Photo Credit: Matej Povše

A group of people standing outdoors in front of a large display board featuring an architectural rendering of a building surrounded by forest. The individuals are dressed in winter clothing and standing on a gravelled area next to a road. Trees and small buildings are visible in the background.
An event inside a large tent, where a speaker is standing at a podium with a microphone. In front of the speaker, an audience is gathered, including photographers, camera operators, and journalists with tripods and recording equipment. A flag is displayed to the side, and the area is arranged with a green floor covering and a floral decoration.
A speaking event inside a tent, where a woman stands on a small stage at a microphone podium, with the Slovenian and a green flag next to her. In front of the stage, a group of attendees is gathered, and on the right side several cameramen and photographers are recording the event. The space is brightly lit and arranged for a formal gathering.
A group of people standing outdoors in front of a large display board featuring an architectural rendering of a building surrounded by forest. The individuals are dressed in winter clothing and standing on a gravelled area next to a road. Trees and small buildings are visible in the background.
An event inside a large tent, where a speaker is standing at a podium with a microphone. In front of the speaker, an audience is gathered, including photographers, camera operators, and journalists with tripods and recording equipment. A flag is displayed to the side, and the area is arranged with a green floor covering and a floral decoration.
A speaking event inside a tent, where a woman stands on a small stage at a microphone podium, with the Slovenian and a green flag next to her. In front of the stage, a group of attendees is gathered, and on the right side several cameramen and photographers are recording the event. The space is brightly lit and arranged for a formal gathering.