Solombalales is going to raise about USD 3.95 bln of credits to upgrade the production

The credits will be used to create a new sawmilling production at the territory of the plant and to implement the project «The upgrading of the woodworking facilities and the creation of forestry complexes». The payment guarantor on credits for the banks shall be OJSC Solombala Pulp-and-Paper Mill as decided at the shareholders meeting of Solombala Pulp-and-Paper Mill that took place on May 20, 2011. The date of credit granting is not disclosed yet, but the press-office announced that it will happen “very soon”.

All the projects of the future plant have been already prepared and at the moment the site preparation works are being conducted. As it was reported by the press-office the tender for supply of equipment has been announced. It is planned that upon the implementation of the project Solombala Sawmill and Woodworking Plant will increase the processing of the raw material up to 800 tsnd cu m3 per year and the lumber production output will reach up to 370 tsnd cu m3 per year. The company will produce dried lumber and the planed lumber, the glued structures and industrial chips for the pulp-and-paper production.

It is planned that in the scope of the second investment project a new wooden-and-trade production will be constructed and will include the wood treatment facility with the output of 1 mln m3 of chips per year. The facilities will be located at the industrial site of Solombala Pulp-and-Paper Mill. According to the press-office of the managing company, the upgrading will be finished by 2018.

The creditor of the first investment project shall be JSC VTB Bank or JSC Sberbank, of the second investment project - JSC VTB Bank North-West or JSC Sberbank, JSC SKB-bank and JSC Bank of Saint-Petersburg”.