The Expert Council of the Industry Development Fund (VEB.RF Group)* approved a preferential loan of 490 million rubles for the implementation of the investment project of Plitwood LLC. These funds will help the plant to launch a new production of large-format white and laminated plywood of high quality. The plant capacity will be 180 thousand cubic meters per year.
The enterprise will be operating on the principle of zero waste: waste wood from the plywood production in the form of chips is used for particleboard production, sanding dust is used for the production of fuel briquettes.
White and laminated plywood is used for the production of construction formwork, in the automotive industry for flooring in trailers and buses, as well as in residential and commercial construction.
Due to the project implementation 650 high-performance jobs are created in the Vologda region. The enterprise will sell products under the Nordeco plywood brand.
Dmitry Zachko, General Director of LLC “Plitwood”:
«LLC “Plitwood” implements a priority investment project in the field of forest development, included in the list of the Ministry of Industry and Trade by order № 10 of 14.01.2020. The project is strategically important for the Vologda region, and the investor is entitled to state support in the form of a soft loan from the FRP. The attraction of this product makes it possible to reduce the cost of the project and the payback period. We thank the Industry Development Fund for giving business the opportunity to take advantage of such serious support».
The total budget of the project is 12 billion rubles.
*Industry Development Fund (VEB.RF Group) was created to modernize Russian industry, organize new productions and ensure import substitution. The FRP programs allow Russian enterprises to get access to preferential loan financing required for launching production of unique domestic products as well as analogues of advanced international developments. The FRP provides loans at 1% and 3% per annum for 7 years in the amount from 5 million to 2 billion rubles, stimulating an inflow of direct investments into the real sector of economy.
Vologodskiye Lesopromyshlenniki Group of Companies – dynamically developing Russian timber industry holding with a full cycle of logging and deep processing of wood, which ranks 11th in the top 50 largest timber companies in Russia by revenue and is recognized as the fastest growing company according to the magazine “Forest Industry” in 2020. It has 4 logging companies and 2 sawmills operating in 12 districts of the Vologda region.