Russian Sveza plans to invest 8.6 billion rubles (EUR 93.4 million) in the construction of a new sawmill in the Vologda region. The mill will produce dry lumber and wood-fuel pellets.
It is reported that the annual production capacity of the plant will be 255 thousand m³ of sawn timber and 35 thousand tons of fuel pellets. Plywood production will also be modernized within the framework of the project.
The construction of the plant will create over 200 new jobs in the region. It is expected that the project will reach recoupment in eight years, and the budget of the Vologda Oblast will receive an additional 250 million rubles a year.
Boris Frenkel, Director for Government Relations at Sveza, explained: “The total volume of financial investments in the project will amount to about 8.6 billion rubles of the company’s own funds. In fact, three industries will be created on the territory of the region: a new line for the production of birch plywood, a modern sawmill for the production of dry sawn timber and the production of wood fuel pellets. “
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