Russian metals manufacturer ChTPZ Group is to branch into the timber industry by establishing a logging facility and two wood-based product plants.
ChTPZ has reached an agreement with the Kirov region’s government to establish the facilities, which will cost around US$330m and will be operational by 2010.
The logging facility will have an annual capacity of 1.1 million m³, with an OSB production plant manufacturing 500,000m³ and a structural timber elements factory manufacturing 237,000m³ a year.
The Kirov Oblast government said that it will give its full assistance in establishing the three facilities. “Establishing of the timber industry holding will facilitate socioeconomic development of the region by attracting investments to the region, creating new jobs and increasing tax revenues of local and regional budgets,” said governor Nikolay Shaklein.
Russia has recently increased its export duty on logs in an attempt to stimulate internal processing of timber.
