MINSK, BELARUS- IKEA partner VMG Industry has begun construction of  production facilities in Belarus, reports the government development board in Minsk, Belarus.

Through September almost $27 million has been invested in a complex consisting of three production facilities: chipboard panels, furniture components made of peeled veneer and cabinet furniture.It is expected 870 jobs will be created.

VMG Industry, or Vakarų medienos grupė, was established in 2002 in Minsk It invests into wood industry and now controls six businesses, producing melamine faced particleboard, plywood items, oak panels, and furniture made of particleboard and solid oak.

VMG is among the largest exporters of wooden products in the Baltic States.

Locally sourced low-quality wood and wood waste will be used as raw materials. At least 70% of manufactured products will be exported, says the development board. IKEA company, on the orders of which the plant is being built.

A state of the art timber harvesting and sawmill enterprise will be established with the local Mogilev Production Forestry Association, expected to come on stream in 2012.

Separately the Belarus government reports an MDF, wood-fiber board, and pulp operation is under development in Minsk by Kronospan.