Oleg Kuvshinnikov met Vladimir Lebedev, Deputy Minister of Natural Resources and Environment of Russia.
The parties agreed that the Vologda Oblast might launch a pilot project aimed at cultivating fast-growing trees for a new cellulose plant.
The Vologda Oblast is a kind of unique region. It is a vast wooded area with some 80% of its total land covered with forests. Wood is the most precious treasure of the region. At present thirteen investment projects supported by the Russian Ministry of Industry and Trade are underway in the region.
Mr. Kuvshinnikov briefed Vladimir lebedev, the Head of the Federal Forestry Agency on construction of a new cellulose plant on the territory of the Vologda Oblast, the largest one in Europe. Sveza Group, a global leader in production of birch plywood is to implement this investment project in Vologda.
On October 5, 2013 Vologda Oblast Governor Oleg Kuvshinnikov and top leadership of Sveza signed an agreement to construct a new sulfate pulp mill in Vologda. The total investment of this cooperation project under public private partnerships will make up over USD 2 bln. Private investments will amount to nearly 90 % of the total sum.
SVEZA is a modern, fast-growing group of companies, one of the leading players in the woodworking market that produces high-quality plywood of natural Russian birch and holds the world leadership in this sector.
The construction of a new plant in Vologda will create about 5,000 working places in different spheres raging from logging to transport infrastructure to production of wood boards and bio-fuel. When fully operational, the new mill will employ approximately 400 persons, while the indirect employment benefit in the region will total 7-8 thousands of jobs.
The new sulfate pulp mill will boost development of timber industry of Vologda territory and finalize formation of a forest industry cluster in the Vologda Oblast. Moreover, as the productivity of forest plantations increases, the opportunity for tailoring wood properties of select species for specific end uses that add more value to the forest supply chain will become more feasible.
The planned capacity of the sulfate pulp mill will be over a million ton of bleached of wood pulp per year.
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