VLP Group is planning to build a new sawmill for 3 billion rubles

Alexander Churkin, Chair of the Board of Directors at Vologodskiye Lesopromyshlenniki Group, declared that the Group was planning to invest 3 billion rubles in building a new sawmill in Kharovsk (Vologda Region) at a press conference devoted to the company’s 30th anniversary. The new production venue will be oriented at processing small-diameter sawlogs.

VLP Group is also going to invest 1.4 billion rubles in expanding its current sawmilling facilities by approximately 20%, increasing the annual volume of incoming raw material at LDK No. 2 enterprises to 400,000 m³ and at Kharovsklesprom, to 600,000 m³. According to WhatWood, the total sawn timber output at these venues was 408,000 m³ in 2020.

Alexander Churkin also spoke about joint investment projects with Cherepovets Plywood and Furniture Plant. For instance, Sheksna Wood-Based Panels Plant is planning to increase its annual particleboard output from 180,000 to 400,000 m³ and MDF, from 130,000 to 170,000 m³. The total investment will reach 6.7 billion rubles. The companies are also planning to invest 1.3 billion rubles to replace the four existing particleboard lamination lines at Vokhtogalesdrev venue with two highly productive lines.

The total investment of VLP Group together with Cherepovets Plywood and Furniture Plant will thus reach 25 billion rubles over the next 5 years, Alexander Churkin summarized.