Construction of 4 bln ruble woodworking plant in Sakhalin to begin next year
YUZHNO-SAKHALINSK. Oct 23 (Interfax) - OJSC BM Sakhalin plans to begin construction of a woodworking complex on Sakhalin next year with capacity to process upwards of 700,000 cubic meters of logs a year, company head Konstantin Beznosyuk told Interfax.
The project will cost an estimated 4 billion rubles. The project is currently at the stage of organizing the logging. The complex will produce lumber, lamina and fuel pellets. A portion of output will be exported to markets in the Asia-Pacific region.
The regional budget allocates 200 million rubles this year for construction of logging roads, purchase of logging equipment and logging operations. BM Sakhalin co-owner OJSC Business Marketing will provide 100 million rubles.
The possibility of Japan's Sojits Building Materials Corporation taking part in the project is currently being discussed, Beznosyuk said. "We are discussing with Sojits management the possibility of that company participating in our project, in construction of a woodworking complex in northern Sakhalin. Perhaps they will take a stake in BM Sakhalin. That option was also discussed. We plan to export a first lot of round timber - 3,000 cubic meters - to Japan in November," he said.