Arkhangelsk region to continue realization of investment projects

There are 5 investment projects that are currently being realized in the Arkhangelsk region and are included in the list of priority investment projects. Total investment volume amounts to RUR 20 bln (EUR 0.5 bln). According to the approved schedules in 2008-2009 investment volume should have reached RUR 6.6 bln (about EUR 170 mln) whereas by January 1, 2010 the actual figure made up RUR 4.3 bln (EUR 110 mln).

Project of LLC Ustyany LPK is being realized in compliance with the investment plan – with investment volume already exceeding the project investment volume by 24% and reaching RUR 1 bln (EUR 25.6 mln). In Bereznik works on construction of a sawmill, drying complex and facilities for planed products manufacture have come to a final stage. The mill is to be launched in 2010.

JSC Ilim Group is modernizing cardboard and paper production at its affiliate company in Koryazhma. As expected, cardboard production will increase by 56.8%, that of office and offset paper – as much as 2.1 times. Total investment volume is to make up almost RUR 15 bln (EUR 385 mln). However, construction of paper making machine was postponed for a year.

Arkhangelsk pulp and paper mill is to modernize cardboard production with investment volume amounting to RUR 5.3 bln (EUR 136 mln). However, realization of the project was also postponed for a year due to unstable economic situation on the world market and decreased demand for timber and paper products. The most discussed project is realized by LLC Solombalales. The company asks for postponing realization of its project for 2 years and is to invest RUR 2.7 bln (about EUR 70 mln).

At the same time there is no need to prolong the project period as the Arkhangelsk region has there more timber enterprises that are planning to realize large investment project that could be included in the list of priority investment projects in the field of forest exploitation. Within 10 first days in June the Ministry for Natural Resources and Timber Industry of the Arkhangelsk region is to choose applications that will be sent to Moscow.