Syktyvkar‘s new mill, part of a €200m investment, is being constructed in Gagarin, west of Moscow, and will have a capacity of 150,000m3 of birch plywood when production starts in 2011. A minimum of 50% will be film-faced product.

The company’s total plywood production, including its existing mill, will be more than 330,000m3.

The investment has been welcomed by Syktyvkar’s sole UK distributor, Midlands-based Multiply Birch Plywood Company Ltd.

“This new capacity will enable us to meet the increasing demand from our customers,” said Andy Green, of Multiply Birch Plywood.

The investment will also see Syktyvkar start chipboard production in 2008. The 400,000m3 capacity chipboard plant, also being built in Gagarin, is designed to serve the Russian domestic market.