UPM is looking to develop a €1bn forest industry facility with the Russian Sveza Group.
The companies have signed a letter of intent to form a joint venture company and to make a final investment decision in the new facility at Sheksna in the Vologda region of northwest Russia. Each party would hold 50% of the joint venture’s share capital.
The complex will include a pulp mill, sawmill and an OSB factory. The sawmill will have a 300,000m3 capacity, while the OSB mill will be able to produce 450,000m3 annually.
“This project provides us with an exciting opportunity to expand our existing Russian operations further,” said UPM president and CEO Jussi Pesonen.
The Sheksna mills will employ about 650 people, with products intended mainly for Russian domestic markets.
