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August 16, 2013

GS Group starts construction of a new wood-processing factory in Pskov region

GS Group, private international holding originating from Russia, has started construction of a new hi-tech added-value wood processing factory Sudoma in Pskov region, alongside with opening a tree nursery for 2,000,000 seedlings. The groundbreaking ceremony took place in the small town of Dedovichi last week. The new facility is primarily aimed at exporting wood building materials to Europe at a reasonable price. Sudoma will be the only factory of such kind in Russia and one of the few operating in Europe.

GS Group holding will invest 1 billion 228 million rouble into the factory construction. It is expected to be completed and put into operation by the end of 2014. Sudoma wood factory is to reach the planned capacity by mid-2015. It will produce high quality finish materials: wood, imposted wood, planed timber. The volume of output is estimated as 61 500 m³ a year, production capacity is set at 150 000 m³ of wood a year.

The decision to enter wood processing market was made in order to diversify GS Group businesses. Innovative production with high added value is one of the holding’s key competencies. What makes the production facilities unique is recycling 100% of timber of any quality. The company does not share «raw material» approach widespread among Russian enterprises. It is much more efficient to produce products of deep processing in the long run. An equally important factor was social responsibility of the holding which resulted in solutions for preservation of natural resources and their full recovery. «The new factory will produce various materials for construction. This will be absolutely environmentally friendly production. It will not get damage from contact with water and will not evolve resin material», — Yury Turenkov, Sudoma CEO told the audience of the ceremony. The area of the enterprise equals to 24 thousand square meters. It will be located in the immediate vicinity of the nurseries where 2 million seedlings will grow annually. 500,000 of which will be used for the needs of the plant.

The wood factory in Dedovichi is the second phase of GS Group large-scale investment project set for the period of 2012-2016. The overall amount of investment is more than 3 billion rubles. The first stage of the project which included timber logging and forest regeneration was finished in 2012. The holding invested 409 million rubles in it. The holding established a nursery for 2 million seedlings, some of which will be fully providing the plant with necessary raw materials for the production in the amount of 150 thousand cubic meters. In the third phase further development of the project is expected. «For Pskov region and for Dedovichi district, as well as for Russia this enterprise has a great very special meaning. Over three billion rubles are invested in the economy of the region. About 400 workplaces are created», — Andrey Turchak, Pskov region governor pointed.