The results of the VIII Krasnoyarsk Economic Forum: solid investments will flow to Siberia

The national bank TRUST will invest in a large-scale sawmilling and woodworking complex in Kezhemsk District of Krasnoyarsk Territory. The region was carefully selected and chosen because the priority projects are successfully implemented owing to federal and regional support program of investment projects in woodworking. The investment to the timber industry complex is an economically sound placement of funds in the long run. It is a significant event for the Krasnoyarsk Territory because a new company will create hundreds of work places and also will increase tax revenues in the local, regional and federal budgets. In 2012, when the mill reaches the design capacity it will pay more than RUR 35 mln of taxes per year. Moreover, the companies of Krasnoyarsk Territory which are involved in the works to be contracted will receive RUR 360 mln.

The volume of processed raw material will amount up to 700 cu m per year, and the finished product output will be up to 300 cu m per year. These figures will allow increasing the regional output of the sawn wood by 10 %. The main consumers of the products will be the Russian and foreign markets: the sawn wood will be exported to Japan, Syria, Egypt, Iran and European markets. The careful attention will be paid to the environmental aspects: the Board of Directors of the mill is additionally planning to launch a timber residues processing. The investments of the National bank TRUST to the complex in Kodinsk will total at RUR 1,2 bln. The investments in the timber industry complex are expected to pay off in 5 years and a half and the total of revenues when the mill reaches its design capacity will be RUR 2 bln per year.

During the VIII Krasnoyarsk Economic Forum the Agreement between the Ministry of Natural Resources and Forestry Complex of Krasnoyarsk Territory and OOO «Progress-Invest» on the creation of woodworking complex in Ermakovsky District was signed. The project implementation will ensure the stable social and economic development not only of the district but of the region as well. The project will represent a complete production cycle from timber harvesting to deep wood processing. The launch of a mill will create favorable conditions for opening of about 100 work places», - told Elena Vavilova, the Minister of Natural Resources and Forestry Complex of Krasnoyarsk Territory. It is worth noting that the launch of the mill is expected to take place in September, 2012 года, and it is anticipated that it will reach the design capacity by the end of 2013. The total amount of investments will reach about RUR 300 mln. The company is planning to produce up to 50 tsnd cu m of finished sawn wood per year. The main types of products will include molded products, laminated veneer lumber, pellets - an eco friendly biofuel.

It is planned that a new enterprise producing OSB will be launched in the Krasnoyarsk Territory by 2014. The Agreement was signed by Edham Akbulatov, the Governor of Krasnoyarsk Territory, and Vadim Zediyarov, Director General of Eniseiplitprom. The investments in the project will amount up to USD 200 mln, the execution period is four years. The expected product output of the mill is about half a million of OSB products per year. The launch of the mill is anticipated in 2013 and the full design capacity of 450 tsnd cu m of OSB products will be reached by 2015. The cost of the project will exceed RUR 6 bln. The opening of a mill will allow creating about 300 workplaces. The OSB mill construction in Sosnovoborsk is a totally new project and there have not been any similar projects at the territory of the region before.

The Basic Element and the Chinese TangShan SanYou XingDa Chemical Fiber Co. Ltd will refurbish ООО «Yenisei PPM» (the Krasnoyarsk Territory) with the estimated scope of investment of $300 mln, as reported by Sergey Babichenko, press-secretary of Basic Element. The both parties have signed a letter of intent to create a joint venture during the VIII Krasnoyarsk Economic Forum.

As previously informed, the Swedish Sodra Group and Krasnoyarsk Angara Paper JSC have entered into agreement during the Forum. The companies will jointly conduct the construction of a new timber and chemical complex of USD 2 bln worth in Yenisei District of Krasnoyarsk Territory. Moreover, the biggest investment project in the Russian timber complex, such as Boguchansky mill (LPK) is being successfully implemented in the region (the scope of investments to the project exceed RUR 86 bln, the investor is "Kraslesinvest" JSC, a Vnesheconombank group of companies).

According to Edham Akbulatov, the Government of the region continues the implementation of major investment projects: «We have been actively supporting the projects on deep wood processing for five years and during this time we have launched 9 state-of-the-art mills».  Elena Vavilova added: «The enhancement of production aimed at development of deep processing of timber is one of the top priorities of the Government of Krasnoyarsk Territory. We are determined to further follow the selected course: to attract the investors, to increase the finished product output and enlarge the markets».