Ministry of Industry and Trade of the Russian Federation Includes Investment Project for Construction of a Plywood Mill in Galich into the List of Priority Forest Development Projects

By order of Denis Manturov, Minister of Industry and Trade of the Russian Federation, an investment project of Segezha Group (part of Sistema JSFC) “Construction of Plywood Mill in the City of Galich, Kostroma Region” has been included in the list of top priority investment projects in forest management.
Order No. 2319, which was signed by the Minister on June 28, 2019, authorizes an agreement between Segezha Group of Companies and Kostroma Region to lease out an allowable cutting area of up to 1.49 million cubic meters of capacity to guarantee availability of forest materials for the investment project.
On January 28, 2019, Prime Minister Dmitry Medvedev signed a decree on the creation of the advanced socio-economic development territory (ASCDT) in Galich. The anchor resident of the territory will be the project of a plywood mill with the capacity of some 130,000 cubic meters of large-format plywood per year. The project was approved by the Committee for Investments of Kostroma Region Administration in July 2018.
The volume of investments into the new production will be about RUB 10 billion. The project will help create more than 600 high-tech work places. The investor has been allocated an area of 31.19 hectares of leased land to build the new facility. Construction will commence in the fourth quarter of this year. The first part of the enterprise is expected to be launched in the fourth quarter of 2021.
During a working meeting in Kostroma, which took place on May 30, 2019, Mikhail Shamolin, President and Chairman of the Board of Segezha Group and Governor Sergey Sitnikov of Kostroma Region discussed the progress of the project and a number of issues related to providing the facility with the necessary infrastructure, as well as the problem of training qualified specialists for the enterprise.
“We are currently at the design stage, main equipment engineering processes are underway, and working documentation is being approved,” Mikhail Shamolin said. “We plan to begin the initial phase of construction as soon as in 2019. We also intend to invest in the creation of a specialized tree nursery to grow seedlings and accumulate the materials that are used for reforestation.”
“This project is extremely important for us,” Governor Sergey Sitnikov said. “The creation of a modern plywood production facility in the city of Galich will constitute an important step in the development of not only the individual municipality, but also of the entire north-western part of the Kostroma Region. We will continue to guide the project at all its dimensions, and provide the investor with all the necessary support. Construction of such a large enterprise in Galich will help us change the city’s economy profile, and eliminate our dependence on a single industry. This is not only a positive thing for the economy, it is also a contribution to social stability.”
Since the very start of the project, Kostroma Region has been providing maximum support to the investor, said Nikolay Ivanov, Managing Director for Implementation of State Programs and Forest Industry Policy of Segezha Group. “All project development and approval processes have been going on actively and quite constructively since 2017. This investment project has also gained support of the federal authorities as well. Now that it has been listed among top priority projects in the sphere of forest management, launching the first stage of the enterprise in 2021 is quite probable,” Nikolay Ivanov said.