OREANDA-NEWS. February 21, 2011. Basic Element and China's TangShan SanYou XingDa Chemical Fiber Co., Ltd have signed a letter of intent to create a joint venture and carry out investment in order to develop state-of-the-art, environmentally-friendly production at the Yenisei Pulp and Paper Mill.

The partnership, announced at the Eighth Krasnoyarsk Economic Forum, calls for measures to modernize and expand production at the mill. Following a feasibility study, the companies will cooperate on the introduction of new technology to enhance environmental performance of the plant as it transitions to the production of high-grade unbleached pulp. The project will also see further development of the plant's infrastructure, including the construction of a new heat and power plant. Estimated investment in the project is USD 300 million.

Andrei Elinson, Deputy Chief Executive of Basic Element, commented: "Our partnership opens up major prospects not only for Basic Element's forest product business but for the Krasnoyarsk Territory in general. It will bring new jobs, increase opportunities for the local economy and encourage foreign investment, while also safeguarding the environment. We are optimistic about the future and look forward to long-term cooperation with our international partner."

"Russia is China's long-standing economic partner. The two countries are stepping up business cooperation before our very eyes thanks to our mutual economic interest and huge trade potential. Our agreement is a proof that we see in Basic Element a dependable, long-term partner on the Russian market with which we intend to develop the forest-product business and implement new projects," said Wang Bing, Deputy Director of TangShan SanYou XingDa Chemical Fiber Co.