OREANDA-NEWS. September 29, 2009. Phase 1 of the MM-Efimovsky wood-processing plant was officially opened in the village of Chudtsy, Boksitogorsky district, Leningrad region, Russia, LSR Group said in a press release.

The joint project of the Austrian company, Mayr-Melnhof Holz GmbH and LSR Group was implemented by MM-Efimovsky with the support of the Leningrad Region Government. The total amount of investment is around Euro 80 million. New wood-processing plant also attracted attention of more than 300 specialists from all over the world: financial field representatives, government authorities, diplomats, businessmen, managers, clients and partners.

Design and construction works were carried out by MM-Efimovsky which was specially formed for implementation of the wood-processing plant project of Mayr-Melnhof Holz GmbH and LSR Group on the territory of Russia.

Phase 1 of the plant with an area of 24 hectares, completed in less than three years since the cornerstone ceremony. A plot of land is already reserved for the second phase of the project, a glued laminated timber plant whose construction is to start in 2010. Consequently, the area of the complex including access ways and a railway siding will total 42 hectares. The annual output after the plant reaches its intended capacity will exceed 650 thousand cubic metres of incoming round timber, and its yield of final products will be 350 thousand cubic metres of sawn timber per year.

Specialists of MM-Efimovsky already completed plant trial which started in April 2009. Now the plant is put into operation and has reached its intended capacity. Today it is one of the most state-of-the-art plants in the Leningrad region that will use an efficient router bit technology increasing the timber yield and reducing waste generation. The production technology is based on waste-free processing of raw materials. 100% of bark and, if necessary, chips will be used as fuel for a plant producing heat energy to be used for drying chambers in summer and for heating all production premises in winter. Chip will be sold to paper mills and saw dust - to flake board and wood pellets production plants.

The basic raw material – spruce – by 80% will be supplied for processing from the forestry stock of the Boksitogorsky and Tikhvinsky districts in the Leningrad region, with the other 20% to come from nearby regions. A portion of raw materials is to be supplied by a subsidiary of MM-Efimovsky, Stroyles 2 that has a lease agreement signed with the forestry authorities providing for a license to harvest 450 thousand cubic metres of timber per annum including 120 thousand cubic metres of sawlog.

The key consumers of the products of the new woodworking plant – wood boards with a size ranging from 13 to 100mm - are construction industry companies manufacturing prefabricated frame buildings and furniture industry companies. The production will be supplied to different regions of Russia, CIS, Japan and Western Europe. This spring the products were for the first time supplied to Germany, Austria, Baltic States, England, Netherlands, Belgium, Denmark, Czech Republic, Poland and Japan.

The launching of a new plant is socially important for the Boksitogorsky district. The company currently employs 200 people. Once the plant reaches its full design capacity the number of employees will grow to 250 or 300.