Russian Segezha Group plans to commence construction of its new birch plywood plant at the location in Galich (Kostroma Oblast) before the end of this year.
In addition to warehouses and administrative buildings, a production area of some 48,000m² is to be built. According to current plans, the plant is to be commissioned at the beginning of 2022.
It is expected to lead to the creation of 600 new jobs. The investment volume amounts to a total of some RUB10bn, equivalent to approximately €140m. The greenfield investment is to be made on the site of the newly created state-owned Galich Advanced Socio-Economic Zone.
In addition to tax advantages, Segezha also benefits from favourable prices in roundwood purchasing, as Russian industry and commerce minister Denis Manturov has included the plant on the list of top-priority investment projects for the forest industry.
Machinery will be supplied by Finnish equipment manufacturer Raute. According to a statement published by Raute at the beginning of October, the order is for a total volume of some €58m.
Raute indicates the production capacity of the equipment as 125,000m³/annum. Together with the existing Vyatsky birch plywood plant in Kirov, which operates two production lines with an annual output of up to 192,000m³, Segezha will have a total capacity in future of some 320,000m³/annum.