Luzales to open an MDF production facility worth 5 billion rubles in the Vladimir region

The Administration of the Vladimir region and one of the largest timber harvesting and processing companies in Russia, Luzales (Komi Republic), have signed a framework agreement on cooperation for the construction of a woodworking plant.

Luzales is ready to invest about 5 billion rubles in the project, it is planned to create about 400 jobs. The Administration of the Vladimir region, for its part, will assist the company in selecting a site, providing the project with the required utility infrastructure, and solving other issues related to the start-up of production. The region also offers the investor favorable logistics and access to the product markets of its interest.

It is planned that timber will be supplied from the northwestern part of Russia: the Komi Republic and the regions of Arkhangelsk, Vologda, and Leningrad, but Luzales is ready to buy it from local harvesting enterprises as well. The timber will be processed into MDF. The project implementation period is estimated at 2-3 years. The start-up of production to a great extent depends on the readiness of the infrastructure and the delivery time of foreign equipment. The project will be financed from own funds of the company.

The memorandum of understanding for the implementation of Luzales’s project in the Vladimir region will be elaborated by the end of this year during a regional investment forum.