Thanks to the continuous recovery of the national economy since the crisis and the launch of new investment projects in the industry, Russian OSB production is steadily increasing.
OSB producers and some senior officials of the Russian Ministry of Industry and Trade recently issued a statement saying that the Russian OSB industry is growing.
According to data released by the state, the consumption of OSB in Russia reached 1.3 million cubic meters last year. Due to the growing demand of some major consumer industries, this number is expected to continue to grow significantly this year.
This will lead to an increase in investment activities in the OSB industry and the launch of new projects.
One of the projects will be implemented in the Volga region of Russia, where a large OSB manufacturing plant will be built. The project will be jointly implemented by China Sichuan Railway Investment Group and Real- Investment Group of Companies, one of Russia’s largest investment groups. The two companies signed an investment agreement during the Eastern Economic Forum in Vladivostok last year .
The new OSB facility will be located in the Nizhny Novgorod region, with an annual production capacity of 412.5 million cubic meters. The investment of the project is estimated at 12 billion rubles (200 million US dollars), and the plant is scheduled to start production in 2021.
The investment payback period for this project is expected to be 6 to 8 years.
The new factory covers an area of 50 hectares and is a core project that will be implemented in the Real-Invest Industrial Park.
The implementation of this project was personally guided by the Governor of the Nizhny Novgorod region, Gleb Nikitin, who said that the regional authorities will provide investors with all necessary assistance.
The new factory will employ more than 400 workers, and most of its future products will be supplied to the Russian low-rise wooden structure housing industry, which has grown significantly in recent years. At the same time, some products will be exported, especially in the Asia-Pacific region.
According to Lev Tarabarin, one of the owners of Real-Invest, the construction of the new OSB plant will help solve some of the non-commercial timber utilization issues in the region. At the same time, it will ensure regular supply of OSB products to meet the needs of customers from the vast regions of the Volga River in Russia.
Most of the raw materials for the new plant will be sourced locally, as well as in neighboring areas, such as Kirov and Ivanovo Kostroma, and the Republic of Moldova.
Mr Tarabarin said that both Real-Invest and Sichuan Railway Company are ready to meet the fierce competition in the domestic market in the next few years. Their main competitors are expected to be local leading OSB producers, such as Petrozavodsk DOK Kalevala factory, Taleon Arbor enterprise (a company that operates 500 cubic meters of Nissan in Tver area) and Kronospan Ufa production line. Mr. Tarabarin added that the operation of the Nizhny Novgorod plant and the expansion of some existing plants may cause Russia to hardly need to import OSB products.