Belarus’ only OSB plant to be built in 2014

MINSK, 7 March (BelTA) –The project to build Belarus’ only factory to produce oriented standard board (OSB) is planned to be executed in 2014, BelTA learnt from the press service of the Economy Ministry.

This issue and a number of others were discussed during a working meeting between Economy Minister Nikolai Snopkov and Kronospan Director Peter Kaindl in Minsk on 6 March.

According to the Economy Ministry, cooperation with Kronospan is one of the most successful examples of interaction of Belarus with major world companies. Around $530 million in foreign investment were put in the Belarusian economy in the course of implementation of Kronospan projects.

As of 1 January 2003, Kronospan put into operation the first phase of the investment project for construction particleboards factory in Smorgon (Grodno Oblast). The project was implemented within 15 months.

The second phase of the project namely the construction of a MDF boards factory is due to be complete in June 2013. There are plans to commission the laminated wood panels and paper impregnation (textured film) plants before the end of the year. Up to 75-80% of manufactured products (wood boards of improved quality) will be sold internationally.

“In addition, Kronospan expressed its intention to implement a new project - to build an OSB factory in the Free Economic Zone Mogilev. The project is estimated at about $140 million. This plant will be Belarus’ only manufacturer of this type of wood panels,” the ministry informed. The enterprise is scheduled to come on stream in September 2014.

The investor is looking into a possibility to build a plant of urea-formaldehyde resins ($33 million) at the unused production facilities of OAO Mogilev Khimvolokno. This will help diversify investment flows of Kronospan in Belarus and ensure sufficient production localization (local wood resources, resins, etc.), reducing to a minimum the import of certain raw materials.

Currently, the experts are finalizing all procedures prescribed in the law on land allocation, infrastructure development and preparation of the investment contract. Interaction with Kronospan is under constant control of Prime Minister Mikhail Myasnikovich. Responsible executor is the Economy Ministry jointly with other government bodies and regional authorities.