Lesnoy Mir to build woodworking mill in Kaliningrad region

Lesnoy Mir OJSC is going to build large woodworking mill in Kaliningrad region, as Vedomosti business paper reported. The project of constructing the mill, as well as customs & logistics terminal and warehouses, was presented on 7 June at the meeting of the expert council “North-West Strategic Partnership”. Investments into the project are estimated at RUR 4 billion. The mill is to produce 495,000 m3 of lumber, 215,000 m3 of white and laminated particleboard, and 23,000 tonnes of pellets. The project assessment was performed by the University of Rosenheim (Germany).

The company has agreed with large logging companies in Komi, Kirov and Kostroma region on wood deliveries. It is planned to export products to EU countries. The payback period of the project is estimated at five years, with planned annual sales of €175 million and net profit of €60 million. According to company Vice President, Financial Director, Vitaliy Terlyuk, Lesnoy Mir has already invested around RUR 600 million of own funds into the project and acquired 51 ha of land. Negotiations with banks and investment funds on co-financing are under way.

The mill will benefit from its unique location, close to Golubevo station which has railway gauges of both Russian and European standard. The company is going to establish customs, transportation and infrastructure terminal there.