Severstal owner Alexei Mordashov, on the photo, will materially expand its wood business.
Photo: Yury Martyanov
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Mordashov to Process Wood In Tandem with Finns
Severstal owner Alexei Mordashov will materially expand its wood business. In tandem with Finland’s UPM, the businessman wants to construct by 2011 a sawmill, an OSB plate maker and a pulp and paper enterprise in the Vologda region. The parties estimate project value at €1 billion. Last time in Russia, a new pulp and paper enterprise was set into motion far back in early 1980s.
Owner of Sveza Group Alexei Mordashov and Finland’s UPM CEO Jussi Pesonen announced yesterday creation of a 50/50 venture in the Vologda region. The company will construct a pulp and paper enterprise with the annual capacity of 800,000 tons, a sawmill (300,000 cu meters) and an OSB plate works (450,000 cu meters). By investing €1 billion in construction, the partners intend to attain the capacity operation for all facilities by 2011.
Andrei Vasyukhnov, who is the vice president for Russia in UPM, said they had chosen Sveza as a partner because of its good standing and knowledge of Russia’s market conditions.
“We decided to work in the Vologda region, as the raw is available there,” Vasyukhnov pointed out. “Of the estimated annual cutting area of 18 million cu meters to 19 million cu meters, only 6 million cu meters are currently used. For our new facilities, we need roughly 4 million cu meters a year. Besides, this region has very good logistics.”
The sawmill and production of OSB plates will be aimed at domestic market, while a portion of cellulose will be exported, Vasyukhnov said. They plan to attract the Development Bank (VEB) and the money of Investment Fund to finance the project, specified Alexei Mordashov, who personally controls Sveza Group.
www.kommersant.com
All the Article in Russian as of Dec. 20, 2007
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