Plans to build a 500,000m³ capacity OSB mill in the Vologda region of Russia were unveiled at a London press conference yesterday attended by several UK panel importers.
The €130m project was shown in detail during a visit of a trade delegation from Vologda region, also attended by prospective investors.
Currently, central Russia has no OSB production, with all its OSB imported. The new plant in Vologda, scheduled to be in production by 2013, coupled with another €150m OSB factory project in neighbouring Karelia province, set for opening next year, will change that mix.
Two companies – Cherepovets Plywood and Furniture and timber harvesting and processing company Vologda Lumberers (VL) – are embarking on the project, backed by the Vologda region government. VL, which cuts about 1.7 million m³ of timber annually, will supply wood raw material mainly in the form aspen and coniferous species.
The 42ha site is being built on the site of a new industrial complex in Sokol.
Dieffenbacher has been selected as the machinery supplier with phase one construction expected to start this year, delivering a capacity of 250,000m³ in 2013 with phase two (2017-18) increasing annual production capacity to 500,000m³.
An economics spokesperson for the Vologda region government told TTJ that the mill would initially serve the Russian market, but once the second phase is complete up to 30% of production would be exported to other European countries. The project is being financed by loans totaling €85m and €25m from the two companies. Further investment of €20m is still required.
A UK panels importer told TTJ that the prospect of Russian OSB becoming available was a welcome opportunity to add another product to importing portfolios, especially as less Russian plywood may be available for export in the future due to increased consumption within Russia.
OSB in Russia currently retails at OSB €400-490/m³.
