Investors and Novgorod authorities agreed upon €15-million composite board mill

Novgorod, December 19. Investors and Novgorod region governor Sergei Mitin agreed upon plans to build a composite wood & cement board mill in the region for €15 million, as regional administration press service reported.

The enterprise will produce 450,000 cu m of board annually. Lesopererabatyvayushaya Innovatsionnaya Kompaniya already has sawmilling business in Pestovo district of the region and is planning to expand its capacities there. Eltomation will supply equipment and technology solutions, while Sberbank will credit the project via its foreign partner banks.

“The project is essential for Novgorod region, as it is focused on processing non-commercial wood which is abundant in the region. The mill will process 80,000 cu m of hardwood yearly”, Mitin said.

This investment project will create additional 150 jobs with average monthly wages of 30,000 – 35,000 Rubles (€740-860). The start of the project is scheduled for April-May 2013, launch – for late 2014.

“Decisions taken at the meeting extended the results of negotiations held in Amsterdam where the parties signed the letter of intent. The administration will render all needed help to implement the project in time”, vice governor Veronika Minina noticed.

Earlier we reported that after a meeting in Amsterdam with Rabobank Group, Lesopererabatyvayushaya Innovatsionnaya Kompaniya and Eltomation Veronika Minina announced in early December plans to build a wood & cement board mill in Novgorod region for approximately 400 million Rubles (€10 million).