DEDOCHIVI, RUSSIA – Switzerland investors, GS Group report the Sudoma timber mill, part of a production facility complex for logging, wood processing and reforestation in the village of Dedovichi, Russia, was recognized as strategic by the local Investment Commission of the Pskov region municipal administration during a panel session held on August 15, 2014. Local authorities will work out a strategic investment agreement with GS Group international investment and industry holding company, the project general investor.

The Investment Commission of the Pskov region municipal administration considered five investment projects in the field of logging, wood processing and animal breeding during the panel session on August 15, 2014. Following its results, The Sudoma timber mill, deep wood processing plant, which manufactures substitute import products, turned into one of the two facilities that the municipal officials will support at the stage of construction in the short run.

The Sudoma timber mill is a part of production facility complex for logging, wood processing and reforestation in the village of Dedovichi, Pskov region of the Russian Federation, which is GS Group investment project. Currently, the first stage of the project implementation is completed. It covers developing wood material bases and setting the tree nursery under the ball-root system technology into operation. Seedlings cultivation is one of the project key business areas that provide high-quality raw material for the ongoing reforestation work. Current capacity for nursery seedling manufacturing output is at 2 million seedlings per year.

The Sudoma timber mill construction was launched in 2013; the facility will reach planned capacity output by 2015. The mill will produce high-quality finishing materials for construction including impregnated and reclaimed wood and hewed timber. The planned output volume is estimated at 61,500 m3 of products annually where about 40% of the products supplied will be import substitutions for the domestic market. The remaining 60% will be exported and made available for other markets at affordable rates.

The Sudoma timber mill will be provided with its own raw material base that is composed from by-products from The Dedovichi logging unit. The by-products will be delivered to Biotop, fuel granules (pellets) production plant, which is planned to be constructed shortly.

“The investment agreement to implement “The Dedovichi production facility complex for deep wood processing” was signed by Pskov region municipal officials in 2012. This year we sent a request to the Chairman of the State Committee of the Pskov region on Economic Development and Investment Policy to recognize The Sudoma timber mill as a strategic investment project and to provide state support, – comments Yury Turenkov, LLC The Sudoma timber mill CEO. – The strategic investment agreement will be signed shortly, which will allow us reaching the planned output volume within the expected time frame.”

As of today, The Sudoma timber mill remains the unique enterprise in Russia and one of the few facilities within Europe that has such specialization.

Additional information

GS Group is an international investment and industry holding, operating using its own high technology in telecommunications and innovation. The international headquarters are located in Zug, Switzerland.

Key activities are: the implementation of international broadcasting projects, nanomaterial and microelectronic R&D and mass-production; deep wood processing; investment in venture projects; media content production and management; software products design and integration; full-service advertisement; logistics and trade.

The Dedovichi production facility complex for deep wood processing is an investment project aimed at the establishment of an integrated closed-cycle manufactory using its own raw materials in the village of Dedovichi, Pskov region. The Dedovichi complex provides for the environmentally friendly waste-free recycling of allocated forest resources with rapid recovery owing to its own reproductive base. The project is based on the implementation of a model which uses intensive forest management by replacing hardwood with more valuable softwood. This is aimed at improving the species and qualitative composition of the Pskov region’s forest resources. The GS Group investment and industrial holding is the project’s general initiator and investor.

The Sudoma timber mill is the only plant in Russia for deep wood processing that manufactures import substitution products. The timber mill produces high-quality finishing materials for construction. Around 40% of the products are supplied to the domestic market as import substitution; the remainder is exported to other markets at affordable prices. The total investment is 1,228 billion rubles, the manufacturing capacity is estimated at 150,000 m3 saw logs per year, the output volume is 61 500 m3 of products per year. As for the materials, the timber mill uses its own base of raw materials, supplied by Dedovichi logging unit.

The Dedovichi Logging and Reforestation Unit provides for the development of a base of wood material and the commissioning of a tree nursery using ball-root system technology. The total investment is 409 million rubles with a total forest area of 70,000 hectares, the output volume (yield of the logging site) is 300 000 m3 per year.

Biotope manufactures fuel granules (pellets) by processing by-products from the Dedovichi timber mill and logging unit. The total investment is 1,540 billion rubles, the output volume is estimated at 90,000 tons of white pellets a year.

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