Kronospan Holdings East Ltd starts construction of manufacture in Bashkiria

In July, 2013 construction of a large enterprise by Kronospan Holdings East Ltd group of companies on manufacture of wood chipboards and laminboards will begin in Bashkortostan. The corresponding land plot rental contract and prime contract are signed today, June 20, in the House of Republic.

“Our joint project gather momentum,” the President of Bashkortostan Rustem Khamitov underlined at the meeting with representatives of Kronospan Holdings East Ltd.

The head of Kronospan Holdings East Ltd Peter Kaindl adheres to the similar point of view.

“We see that the state structures are very active. All administrative work is under control,” Peter Kaindl marked during the dialogue with journalists after the meeting with leadership of Bashkortostan. “The today's meeting was also very effective and well prepared. From my part, I am ready to report that we meet the project timeline, and already in the beginning of July construction of our enterprise will begin.”

According to Peter Kaindl, "PSJ" company which already has experience of constructing such objects including for Kronospan Holdings East Ltd will be engaged in construction of this large enterprise for manufacturing wood chipboards and laminboards in the republic.

“We have a very ambitious goal — we want to erect a building by the end of this year, and already in the third quarter 2014 to start directly manufacture of production,” the investor ascertained.

Thus, only at the first stage of the project it will be invested 200 million euro. At the final stage, about one thousand jobs will be created at the enterprise.

“At the first stage it is planned to make annually over 700 thousand cubic metres of products,” the head of Kronospan Holdings East Ltd told the journalists.

It should be mentioned that on August 17, 2011 the President of Bashkortostan Rustem Khamitov and the head of Kronospan Holdings East Ltd Peter Kaindl signed the investment agreement on construction of the large woodworking enterprise in the republic.

The new enterprise plans to process annually about 2,5 million cubic metres of wood. To supply it with such quantity of raw materials, logging should be increased at least by 4,5 million cubic metres a year as a whole over the republic.