UPM-Kymmene and Russia’s Sveza Group have formerly signed an agreement to create the forest industry-focused OOO Borea joint venture company.
Both firms will take a 50% share in the business, with the chairmanship rotating between the two companies. Sveza’s managing director Andrey Kashubski will be the first chairman.
Borea, based in Sheksna, north-west Russia, will include a pulp mill, sawmill and OSB panel mill, with annual production expected to be 800,000 tonnes, 300,000m³ and 450,000m³ respectively.
The manufacturing facilities will require a €1bn investment from UPM and Sveza, with some 650 jobs created.
Investments in technolgoy are due to start in autumn this year, with the facilities in operation by 2012.
