The Karelian government signed an agreement with Swedish company IKEA. According to the agreement the Swedish company will build a saw-mill and a factory for furniture panels within the republic. The agreement was signed by Head of the Republic Sergei Katanandov and Vice-President of Swedwood (a subsidiary of IKEA) Nils Skaerbaek.
According to Mr Skaerbaek, the total cost of the project is EUR 16 million. The saw-mill and factory are expected to be located in Kostomuksha. The factory will be able to produce 100 thousand cubic metres of converted timber and 30 thousand cubic metres of furniture panels a year.
This project is a continuation of our work to develop the timber processing industry in Karelia,' Mr Katanandov said in an interview with journalists. 'Much of the equipment used in Karelian saw-mills is now out-of-date and it can not provide competition on the world market. So it is very important for us that another modern enterprise is being created in the republic.' Mr Skaerbaek said 'We are always looking for opportunities to open such saw-mills in various countries. There are good timber reserves in Karelia. This makes it an important and even crucial project.' He added that Swedwood is planning to start construction next summer.
News source: www.rosbaltnews.com
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Business news archive for 10 October' 2003.
Business news archive for October' 2003.
Business news archive for 2003 year.