Sveza to build a greenfield pulpmill in Vologda region

Sveza Group and the government of Vologda region have signed the agreement on implementation of an investment project. The project involves construction of kraft pulp mill on public-private partnership principles.

Total investments into the construction of the mill will exceed $2 billion. Private funds will make up 90% of this amount. The state support will include help in the construction of infrastructure, including transport and energy one, tax privileges and state guarantees for bank loans. The private investor is responsible for the construction and commissioning of the industrial object itself.

This agreement will be a serious reason for the government to regard granting the site with special economic zone status with the possibility of additional federal tax incentives and customs preferences.

Alexey Mordashov, Chairman of the Board of Sveza, said: “We continue to invest in new technologies and high added value products. A new mill of Sveza group will specialize in production of bleached softwood and hardwood kraft pulp. The projected mill will use the most modern environmentally friendly technologies in the world and will comply with all Russian regulations on the quality of waste treatment. In particular, it will apply the most advanced water treatment system”.

The estimated production capacity of the enterprise is over 1 million tonnes of bleached kraft pulp per year. At the moment, preliminary works have already started.