Updated April 18, 2008

   Estonian Estonian Pulp and Austrian Andritz have started to construct a plant for production of Chemi-Thermomechanical Pulp (CTP) and cardboard in Dedovich region of Pskov area.

The aggregate amount of invested funds in a project totals more than € 1 billion.

    The construction consists of two stages

.

The CTP production with a 270 000 tons capacity of pulp a year will be constructed within the first stage costing € 300 million. Within the second stage will be increased the CTP production capacity to 450 000 tons, as well as construction of cardboard production (by 480 000 tons). More than 2 000 inhabitants of Pskov area will be provided with working places after the enterprise launching.

As stated the core investor Roar Paulsrud within the held presentation of the plant construction project, it is planned to complete the works construction by 2011.

The plant capacity is 270-330 000 of processed hardwoods within the first stage.

   Plant construction in Dedovich region of Pskov area is included in the project

of the federal target program for establishment and development of capacities for advanced processing of lumber.

" It has been planned to start plant construction two years ago.

Investors have treated seriously the first stage of building, and walls construction of the plant starts within a year", said the area governor Mikhail Kuznetsov at the ceremony of construction beginning.

He underlined that aspen will be used as a raw material for CTP and cardboard production as th is lumber is currently used almost nowhere.