"SmartWood Lviv"

Project summary

“SmartWood Lviv” is a project for the production of wooden pallets and energy pellets at a single factory in Lviv region, Ukraine. The project aims to create a modern integrated production facility that maximizes the use of wood and sawn timber trimmings, minimizes waste and provides two revenue streams: B2B pallets for export to the EU and pellets for the wholesale energy market in the EU and Ukraine. The production line allows for the production of 300–500 pallets per day according to EPAL and ISO standards, with wood drying in a drying chamber. Waste and trimmings are directed to the production of pellets using a granulation line and a dryer. This reduces waste and saves resources. The main raw materials are pine, spruce and oak. The stock in the warehouse is 1–2 months, which ensures stable production. Ukraine has enough wood, and the demand for pallets and pellets in the EU is growing due to the shortage of raw materials and the promotion of sustainable energy fuels. The team consists of a production manager, 5–8 operators, a logistician and a driver, a total of 7–12 people. The project budget is approximately $1.33–1.37 million and includes equipment, building, installation, raw materials, certification, logistics, salaries and reserve funds. Pallets are sold at an average price of $8–15 per unit with a margin of 30–40%, and pellets are sold at $120–150 per ton with a margin of 25–30%. The project complies with EPAL, ISPM‑15 and ESG standards, which opens access to the European market and emphasizes environmental friendliness. The marketing strategy includes direct B2B sales, participation in exhibitions, promotion via LinkedIn, premium packaging and long-term contracts. “SmartWood Lviv” offers the investor a stable, profitable and scalable business with high payback, diversified income and realistic financial indicators.