UPM-Kymmene is collaborating with the Russian timber company ZAO Novgorodlesprom to build a new Euro30m sawmill in Pestovo, between St Petersburg and Moscow.
Initially the sawmill, due to start operations at the end of 2003, will produce 200,000m3 of sawn whitewood a year.
UPM Kymmene, which will have a majority shareholding in the venture, considers it strategically important to be active in Russia.
Kari Makkonen, president of UPM-Kymmene’s wood products industry, said: ‘We have had positive experiences of operating in the Novgord region for more than 10 years. At the same time, it has become increasingly difficult in Finland to operate a profitable wood products industry.’
Most of the production will be exported and further processing is planned. The sawn timber will be 100% kiln dried.
This is UPM-Kymmene’s second joint venture with ZAO Novgorodlesprom. The first was a birch plywood mill with an annual production of 60,000m3. It has recently been decided to build another joint factory next door to produce birch veneer. This mill, which will produce more than 10 million m2 a year, will start up at the beginning of 2003.
