April 25, 2008 UPM and Sveza Group of Companies signed a 50:50 joint-venture agreement. The letter of intent was signed earlier, December 19, 2007.

The companies plan to construct an advanced woodworking plant in Sheksna district (Vologda region). New woodworking complex will include an advanced pulp-and-paper mill, a sawmill and a plant for OSP panels production. Production capacity is to make up 800 thousand metric ton of pulp, 300 thousand cubic meters of sawn timber and 450 thousand cubic meters of OSP panels.

The joint-venture will continue works on feasibility study and to get all the required documents. The woodworking plant will be launched in 2012 and provide 650 workplaces in the region. Expected investment volume amounts to 1 bln Euro.

Business Support Bureau "Runa" www.runa.info