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Russians and Finns to invest $US 1.5 billion in timber

Finnish forest industry group UPM and Russia's Sveza Group, controlled by Aleksey Mordashov, have agreed to invest $US 1.5 billion in a pulp mill joint venture.

The companies will build a state-of-the-art forest industry facility in the Vologda region of north-west Russia.

The industrial complex will include a modern pulp mill, a saw mill and an OSB building panels mill.

The total investment in the facilities will exceed $US 1.5 billion.

“Russia’s timber industry has huge potential. In order to fulfill this potential substantial investments are needed. Our project is one of the first major projects of that kind. It's also the result of the state policy to bring investors into Russia’s timber business,” commented Aleksey Mordashov, the Chairman of Severstal Group, which includes Sveza.