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The Expert Council Approved the Project STOD for the Construction of Two Factories

The project of the Russian holding "Modern Technologies of Wood Processing" has acquired the status of a resident of the Special Economic Zone "Titanium Valley". The meeting of the Expert Council chaired by the First Deputy Governor Mr. Alexey Orlov was held on August 15th in the Government House.

During the Exhibition “Innoprom-2017" the company "STOD" and the Government of the region have signed the Agreement on the implementation of the investment project for the creation of high-tech woodworking production in Sverdlovsk region. During this year, negotiations with the company were conducted by the Development Corporation of Middle Ural, which attracted the investor, helped to work out the project and find a site for production.

The arrival to the region of such big and significant investor as the Russian woodworking holding company "STOD" is an excellent example of how the targeted attraction works for a specific investment niche. The DCMU conducted an analysis of the forest fund. We have identified for ourselves several segments which will have competitive positions in the market, based on the region's raw materials supply, access to potential markets and export potential. For example, wooden board production was a one of this kind. Further, we have established a contact with all large timber companies in Russia and abroad and provided them with a presentation of the region as a site for the placement of woodworking industries. We began to interact very actively with the companies in the sector - and achieved this first result, - commented Sergei Kiselev, the Director General of the DCMU.

According to Sergei Kiselev, it is important that this is an external investment to the region.

This is a new major employer for Sverdlovsk region and a new large taxpayer, - commented the  Director General of the DCMU.

The business plan "STOD-Ural" is envisaged in the first 10 years of production activities to transfer to the budget VAT in the amount of over 8,4 billion rubles and income taxes in excess of 1,1 billion rubles.

At the Expert Council, the Deputy General Director of STOD LLC, the project manager of STOD-Ural LLC Mr. Yuri Kuznetsov, represented the investor company. The company plans to build two factories. First, a factory for the production of OSB-plates with the capacity of 300 thousand m3 per year will be built. The volume of investments will be 10 billion rubles. 400 workplaces will be created directly at the factory. In addition, it is projected to create about 800 jobs in related supply organizations (logging, timber transportation, etc.). The second stage is developing a factory for the production of LVL beams with an annual capacity of 80,000 m3. The amount of investments in it will be up to 5 billion rubles, it is planned to create 200 jobs directly in production and about 200 jobs in related supplying organizations. Both enterprises will be located in the Titanium Valley SEZ.

As Mr. Artem Kuzlasov, General Director of the Titanium Valley SEZ put it:

The demand for localization in the Titanium Valley is growing, residents are entering the site, the construction of the main engineering infrastructure has been completed. All this testifies that in 2017 the project has been developing from the investment phase to the operational phase, as I said earlier. In July, the Ministry of Economic Development of the Russian Federation transferred the Titanium Valley SEZ from the category of “conditionally effective” to the “effective” category."


"STOD" will begin construction in autumn 2017. In today's Russia there are only two factories producing high-strength LVL bar - in Nyagan and the plant "STOD" in Torzhok. The products are successfully delivered to the countries of Europe, the USA, Australia and the United Arab Emirates. In connection with the actualization of wooden housing construction, including multi-storey buildings (it is wooden house-building that was designated as a priority area in the Development Strategy of the Russian Timber Industry Complex until 2030), it is possible to forecast a significant increase in demand for glued veneer lumber in Russia. LVL beam is a high-strength material (wood-based composite). Bearing structures from such a bar can replace steel, - as a building material it competes with metal. Another manufacturing - OSB boards - are also  in demand in the Russian and International markets. There are only three large plants for the production of the OSB boards in Russia, the largest enterprise also belongs to the “STOD” and located in Torzhok.

Factories "STOD" in Sverdlovsk region will be focused on the Russian market and the markets of the Central Asia.

Today the DCMU is developing several new projects in the timber industry, including foreign companies cooperation projects. Estimated cutting area of the region is 25 million cubic meters per year, but in fact, less than 6,5 million cubic meters are harvested. An accessible forest resources should be used both from an economic and ecological point of view.

The Corporation is actively working on attracting companies into other specific sectors such as Oil&Gas, energy, engineering and chemical industries. In particular, Sverdlovsk region is a promising one to produce the equipment and components for the Oil and Gas industry. In addition to strategic geographical location, the region has the necessary infrastructure capabilities and competencies in industrial cooperation, which together will allow to create an industrial clusters of a new technological level.

15 August 2017, 10:00
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