UPM and Sveza to postpone realization of project in Vologda region for 2 years

UPM-Kymmene (Finland) and Sveza Group postponed realization of the project on construction of a large timber industrial complex in the Vologda region for 2 years.

The research works to follow the schedule the decision on switch to the next stage of project worth 1.2 billion EUR is to be taken by the end of 2011. Investors will also consider governmental support regarding investing in infrastructure development. Construction works were due to start in the beginning of 2009 with production to be launched in 2011.

Joint venture of UPM and Sveza – LLC Boreya – was formed in 2008 for construction of a timber complex, incl. advanced pulp and paper mill (800 thousand tonnes), sawmill (300 thousand cubic meters) and a mill for OSB production (450 thousand cubic meters). The possible construction site is Sheksna (Vologda region).

According to GreenPeace, it was the last project that was likely to be realized in the field of new pulp and paper mill construction.

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Issued by:  RUNA

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Issue date: October 27, 2009

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