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August 14, 2013

GS Group to build timber factory that will produce import-substituting wood

Sudoma added-value wood processing factory will produce high quality finish materials. The foundation stone will be laid on August, 15, in Pskov region (Dedovichi village). The new facility will help reduce the volume of imported wood in Russia as well as start exporting wood building materials to Europe at a reasonable price. This will be the only factory of this kind in Russia and one of the few operating in Europe. International multisectoral holding GS Group is the investor of the project.

The facility will mainly produce reclaimed wood, imposted wood, planed timber. The volume of output is estimated as 61 500 m3 a year, production capacity of the facility is set at 150 000 м3 of wood a year.

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.

Pskov region Governor Andrey Turchak, GS Group Vice President Alexander Kolpyshev, Sudoma CEO Yury Turenkov are attending the ceremony of laying the foundation stone for the wood factory.

GS Group investment project dealing with added-value wood processing in Dedovichi was launched in 2012 and is to be completed by 2016. A total amount of the holding’s investment amounts to 3 billion 177 million rouble. The project includes timber logging and forest regeneration. Its first stage was finished in 2012, the holding invested 409 million rouble. Growing forest transplants is one of the activities within the project scope, which is supposed to provide high quality stock material for forest regeneration. Transplants will be cultivated in a container nursery (containerized seedlings). Production capacity of the container nursery is set at two million seedlings a year. The second stage of the project is the construction of Sudoma added-value wood processing facility. The third part is the intensive development of the project, GS Group will invest 1 billion 540 million roubles at this stage.

The project is being developed according to the agreement between GS Group and Pskov region administration, the latter providing consultations on the issues dealing with the project. It is to supply the region with 400 new jobs, 160 of them already created.