Arkhangelsk timber industrial complex remains attractive for business, which is proved by results of companies' investment activities. Companies invest not only in wood processing and pulp and sector, but in wood harvesting.

However, in 2006 there was a 12% decrease in investments amount in wood harvesting as compared with the indexes of 2005 (7.6 mln EUR in 2006 vs. 8.7 mln EUR in 2005), major part of the investment amount being aimed at modernization of harvesting machines population (including imported CTL machines).

Investment in wood processing showed the highest growth in 2006 – 77% increase as compared with the previous year (over 23 mln EUR invested in 2006 vs. 13 mln EUR in 2005). In 2006 major part was invested in modernization and construction of drying facilities several sawmills and pellet production plant in Arkhangelsk.

Investment in pulp and paper production sector in 2006 made up almost 62 mln EUR, which is 3.5 more than the year before, major part of the amount invested by Arkhangelsk Pulp and Paper mill for realization of the largest investment project in the Russian pulp and paper sector – construction of wood-preparation shop (its total cost making up 67 mln EUR).

It should be noted that most part of the above-mentioned investments was made from the enterprises' own funds. As for external investments, they are not numerous and large so far, although today a number of interesting investment projects are ready in the Arkhangelsk region for external investors.

Investment projects:

The largest in Europe Solombala Sawmill has worked out the project on wall beam and related molded goods production. The project cost estimated at 0.7 mln USD, payback period – 39 months.

Municipality of Novodvinsk (Arkhangelsk region) elaborated the project on construction of OSB chipboards production plant. The plant is supposed to operate utilizing wood wastes, low quality soft wood and hardwood not demanded in the region for other wood processing purposes. The project total cost – 40 mln USD, payback period – 4.5 years.

Timber plant 25 initiated the project on pellet production plant.

Another interesting and one of the most expensive projects – construction of industrial parity on deep wood processing (uniting wood processing facilities, production of joinery, molded goods, furniture boards, fuel briquettes, glued square logs and other products. The project total cost – 120 mln USD, payback period – 10 years. 

These are just some of the investment projects within timber industrial complex of the Arkhangelsk region. There are also several modernization projects for Shalakusha timber plant, reconstruction of several shops of Solombala Pulp and Paper mill and many others.

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