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Finnish paper and forestry group UPM to invest in Russia

Finnish paper and forestry group UPM-Kymmene on Wednesday said it planned to form a joint venture with the Sveza Group of Russia.

The two groups have inked a letter of intent and were to conduct a feasibility study of a forest industry facility in the Vologda region, north-west Russia. The envisaged complex included a modern pulp mill with the capacity to produce 800,000 tons, a sawmill and building panels mill in Sheksna, a joint statement said. The investment was estimated at some €1 billion (about $1.4 billion) and the facilities would employ some 650 people, the groups said. Sveza Group owner Alexey Mordashov said the groups hoped to „get support from the state.”

Jussi Pesonen, UPM chief executive, said the group had been looking for „new openings in Russia” for the past three years. UPM, with production in 15 countries, is a leading producer of printing paper, specializing in magazine paper, newsprint, fine and specialty paper, converting materials and wood products. (m&