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August 16, 2014

The Sudoma timber mill recognized as a strategic investment project

The project "Development of The Sudoma timber mill production facility complex for deep wood processing" was recognized as strategic by the Investment Commission of the Pskov region municipal administration during the panel session held on August 15, 2014. Subsequently, local authorities will work out a strategic investment agreement with GS Group international investment and industry holding company, the project general investor.

The Investment Commission of the Pskov region municipal administration considered five investment projects in the field of logging, wood processing and animal breeding during the panel session on August 15, 2014. Following its results, The Sudoma timber mill, deep wood processing plant, which manufactures substitute import products, turned into one of the two facilities that the municipal officials will support at the stage of construction in the short run.

The Sudoma timber mill is a part of production facility complex for logging, wood processing and reforestation in the village of Dedovichi, Pskov region of the Russian Federation, which is GS Group investment project. Currently, the first stage of the project implementation is completed. It covers developing wood material bases and setting the tree nursery under the ball-root system technology into operation. Seedlings cultivation is one of the project key business areas that provide high-quality raw material for the ongoing reforestation work. Current capacity for nursery seedling manufacturing output is at 2 million seedlings per year.

The Sudoma timber mill construction was launched in 2013; the facility will reach planned capacity output by 2015. The mill will produce high-quality finishing materials for construction including impregnated and reclaimed wood and hewed timber. The planned output volume is estimated at 61,500 m3 of products annually where about 40% of the products supplied will be import substitutions for the domestic market. The remaining 60% will be exported and made available for other markets at affordable rates.

The Sudoma timber mill will be provided with its own raw material base that is composed from by-products from The Dedovichi logging unit. The by-products will be delivered to Biotop, fuel granules (pellets) production plant, which is planned to be constructed shortly.

“The investment agreement to implement “The Dedovichi production facility complex for deep wood processing” was signed by Pskov region municipal officials in 2012. This year we sent a request to the Chairman of the State Committee of the Pskov region on Economic Development and Investment Policy to recognize The Sudoma timber mill as a strategic investment project and to provide state support, – comments Yury Turenkov, LLC The Sudoma timber mill CEO. – The strategic investment agreement will be signed shortly, which will allow us reaching the planned output volume within the expected time frame”.

As of today, The Sudoma timber mill remains the unique enterprise in Russia and one of the few facilities within Europe that has such specialization.