Singapore's Sudima International, which announced earlier that it would build a wood-processing complex in the Primorye Territory worth $200 million, has decided to split the project into two parts due to a potential lack of timber.
The second facility will be located in the Transbaikal Territory.
"Originally the plan was to create a new production facility in Primorye, but due to the potential lack of timber for such a big project, it's been split into two parts, and the second will be implemented in Transbaikal. Investors have already held talks on this issue in Transbaikal. Now the Far East Investment and Export Agency [FEIEA] is helping the investor choose a site," the agency's press service quoted its head, Leonid Petukhov, as saying.
The second facility will produce floorboards, furniture boards, sawn lumber, and fuel pellets.
Total investment in the project will remain at about $200 million, according to the press service.
India's KGK is acting as a co-investor.
"Projects involving the deep processing of lumber [in Russia's Far East] will be discussed during Indian companies' visit to Vladivostok in the middle of August of this year," the FEIEA said.
A company, KGK Sudima Evergreen, has been created to implement the Primorye project. It is planning to submit an application to the Corporation for the Development of the Far East to become a resident of the Free Port of Vladivostok.
Sudima was founded in Singapore in 1994. It focuses on agriculture and on the storage and production of wood products. It owns wood-processing complexes in Indonesia, Myanmar, and Vietnam.