GS Group to build finishing mill in Pskov region

GS Group, a private international holding originating from Russia, has started construction of a new added-value wood processing factory Sudoma in Pskov region, alongside with opening a tree nursery for two million seedlings. The ground-breaking ceremony took place in the small town of Dedovichi last week.

The new facility will sell finishing materials for construction on the home market and export some volumes to Europe. According to the corporate press release, Sudoma will be the only factory of its kind in Russia and one of the few operating in Europe.

GS Group holding will invest RUR 1.23 billion into this project which is expected to be completed by the end of 2014. Rated capacity will be reached by mid-2015. It will produce high-quality finishing materials: thermo-modified and impregnated timber as well as planed lumber. Annual output will reach 61,500 m3 of products.

The decision to enter wood processing market was made in order to diversify GS Group businesses, which is mainly active in the telecommunications market.

The company also invested in nurseries where 2 million seedlings will grow annually, 500,000 of which will be used for the needs of the mill. Further development of the industrial site is also expected later.