Investment Agreement signed between the Administration of the Urban Settlement “City of Krasnokamensk” and GR Lesnaya Promyshlennost LLC
GR Lesnaya Promyshlennost LLC is not the first company to officially confirm its intention to invest in the development of enterprises in the "Uranium Capital" of Russia. Earlier an investment agreement with agricultural group Talina, planning development of Dauria meat-packing plant was signed at Zabaykalsky Krai Government. In addition, plans to create a dairy plant and a hydrometallurgical plant for processing of rare and rare-earth ores are to be formalized in the near future.
According to general director of the investing company Rasul Mikailov, production at the timber processing plant will start at the end of 2016. Total investments in the enterprise will amount to more than 760 million rubles. Capacity of the plant in the early stage will be 100 thousand cubic meters of finished products, with subsequent expansion to 200 thousand cubic meters. About 250 new jobs will be created in Krasnokamensk.
"We have already rented forest plots in Ulyotovsky District of Zabaykalsky Krai. Krasnokamensk has good logistics, it’s the best place for a production facility, taking into account both infrastructure and the benefits. Therefore, a timber processing enterprise will be built here. Our products will include graded planed board, planed timber, and wood panels. We have calculated everything and believe that we can reverse the practice of selling logs abroad, established in Zabaykalsky Krai and other regions; we will leave the added value in Russia" - said Rasul Mikayilov.
In the near future, GR Lesnaya Promyshlennost LLC plans to add a wood waste processing facility to the timber processing plant. Sawdust and wood chips will be mixed with coal to produce pressed wood-coal bricks for subsequent sale. This will address the problem of waste management and bring additional revenue.
It should be noted that the timber processing plant project will be implemented with the support of the city’s backbone enterprise - Priargunsky Industrial Mining and Chemical Union (PIMCU PJSC) – and ARMZ Uranium Holding Co. "As part of diversification of business, we are considering a number of serious business projects in Krasnokamensk. Timber processing plant, whose products will be used at our enterprise as well, became the first one. We also continue to participate in preparation of a cement plant project, explosives factory and other enterprises, whose products will be relevant for PIMCU. Our involvement primarily consists in the provision of ready production areas"- said Boris Prosekin, Acting General Director of PIMCU. PIMCU’s Commercial Director Andrey Prostakishin added that the seriousness of intentions of GR Lesnaya Promyshlennost LLC was confirmed by signing a lease of production site facilities with a total area of 45 thousand square meters, including energy infrastructure and railway access.
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