Mayr-Melnhof Holz GmbH and LSR Group to launch the largest wood-processing plant in Northwest Russia

September 25, 2009 Phase 1 of the LLC MM-Efimovsky wood-processing plant was officially launched in the village of Chudtsy, Boksitogorsky district, Leningrad region. The joint project of the Austrian company, Mayr-Melnhof Holz GmbH and LSR Group was realized by MM-Efimovsky with the support of the Leningrad Region Government.  Total investment volume amounted to EUR 80 billion.

Design and construction works were performed by LLC MM-Efimovsky that was specially formed for realization of the wood-processing plant project of Mayr-Melnhof Holz GmbH and LSR Group on the territory of Russia.

Phase 1 of the plant with an area of 24 ha was finished in less than three years since the cornerstone ceremony. A site is already reserved for the second phase of the project – a glued laminated timber plant with construction to start in 2010. Consequently, the area of the complex including access ways and a railway siding will total 42 ha. Plant capacity being reached the annual output is to exceed 650 thousand cubic meters of incoming round timber, and its yield of final products will be 350 thousand cubic meters of sawn timber per year.

Specialists of LLC MM-Efimovsky already completed plant trial which started in April 2009. Now the plant is put into operation and has reached its planned capacity. Today it is one of the most advanced plants in the Leningrad region that will use an efficient router bit technology that allows increasing the timber yield and reducing waste generation. The production technology is based on waste-free processing of raw materials. 100% of bark and, if necessary, chips will be used as fuel for a plant producing heat energy to be used for drying kilns in summer and for heating all production premises in winter.  Chip will be sold to paper mills and saw dust - to chipboard and pellet production facilities.

The basic raw material – spruce – by 80% will be supplied for processing from the forestry stock of the Boksitogorsky and Tikhvinsky districts in the Leningrad region, with the other 20% to come from the nearby regions. A part of raw materials is to be supplied by a subsidiary of MM-Efimovsky, Stroyles 2 that has a lease agreement signed with the forestry authorities providing for a license to harvest 450 thousand cubic meters of timber per annum including 120 thousand cubic meters of sawlog.

The key consumers of the products of the new woodworking plant – wood boards with a size ranging from 13 to 100 mm - are construction industry companies manufacturing  prefabricated frame buildings and furniture industry companies.

The production will be exported into different regions of Russia, CIS, Japan and Western Europe. This spring the products were for the first time supplied to Germany, Austria, Baltic States, England, Netherlands, Belgium, Denmark, Czech Republic, Poland and Japan.

New plant is socially important for the Boksitogorsky district. The company currently employs 200 people. Project capacity reached the number of employees will grow to 250 or 300. The surplus tax revenues of the Leningrad region budget will amount to around 120 million RUR a year. The plant will operate round the clock – seven days a week, in three shifts.

By Order of the RF Ministry of Industry and Commerce, the LLC MM-Efimovsky project was included in the list of national priority investment projects in the field of forest exploitation. 

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Issued by:  Runa

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Issue date: September 29, 2009

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