Two Forest Industry Projects to be postponed in Komi, Russia

Two large investment projects – included in the list of federal priority projects – were frozen in the Komi Republic with total investment volume amounting to some 70 bln RUR (EUR 1.7 bln). They being:

Project on construction of Troitsko-Pechora timber industrial complex (67 bln RUR) realized by LLC UniversalStroy. The project aims at reaching capacities at the level of 905 thousand ton of pulp, 450 thousand ton of paper and 700 thousand ton of sawn timber. The investor has completed the full scope of concept design works within 3 years. However, the company hasn’t concluded a forest lease agreement. This year 2 of 4 LLC founders gave up the project – Sroygasconsulting and Rus’. As a result UniversalStroy unwound the funding of the project for this year.

At the same time Knyazhpogotsk fiberboard mill (WOODWAY Group) was to increase fiberboard production output by 15 mln sq. m and launch sawn timber production – 200 thousand cubic meters – in 4 years. The works started in 2007; however, currently the project is not financed.

The rest 4 federal priority investment projects are being realized. They include reconstruction at Syktyvkar woodworking plant, startup of Syktyvkar mill for OSB production, Ust-Kylom woodworking plant and woodworking plant for production of prefabricated low-rise timber houses.