OREANDA-NEWS. Promsvyazbank has provided a seven-year loan for a total amount of ?38 million to Russian Timber Group Ltd.

The funds are to be used to build a lumber mill and wood-processing complex Igirma, located in the settlement of Novaya Igirma, Irkutsk region. The mill with a total annual output of 500 thousand cubic meters of high-grade sawn timber is scheduled to be launched at the end of 2008. No waste production technologies will be applied at the mill with the wood chips sent to a pulp plant and the bark burnt in the automated boiler plant. Therefore, the mill will need no external supplies of heat.

The total volume of investment in the project to be carried out by the Russian Timber Group stands at more than US$100 million. The mill is designed to process about 1 million cubic meters of felled timber with some of its products destined for export.

The new mill is to provide more than 340 jobs, and approximately one thousand positions in the companies set up to run it. The administration of Irkust region has put the project on its list of priorities.