Sveza gives up on a 6 billion rouble wood board mill project

Source:
pravdaurfo/Fordaq
Views:
2894
  • text size

One of the leading Russian woodworking companies "Sveza" postponed its investment project stipulating a wood board mill construction based at the site "Sveza Verhnaya Sinyachiha", reports pravdaurfo.ru. 

One of the main reasons for Svezas's giving up on this project was the sudden ruble devaluation which was potentially increasing the project cost by 25%. Among other reasons there was listed the concern of the German colleagues who were responsible for the equipment supply due to the sanctions imposed on Russia on the background of the events in Ukraine. 

Originally it was planned that the active stage of the particle board and OSB mill construction would be started during spring 2015. The designed capacity had to come up to 500,000 m3. Sveza was going to use low grade wood and saw mills by-products as a raw material for the production in question. 300 jobs were supposed to be created on the realization on this project. 

The company was ready to inves about 6 billion rubles, but when the necessary amount of money was stipulated the calculations were made in ruble terms, even though the company was going to buy a foreign equipment. The German Dieffenbacher was the one to supply the company with the necessary equipment. With the ruble having devaluated, the cost of the project realization soared by 25%, underlines pravdaurfo.ru.

Post comment