Russian Forestry and Wood Supply Operations Analysis
80
DEVELOPMENT
DEVELOPMENT
KASTAMONU has Opened
a New Plant in Alabuga
On 24 September 2014 the Turkish company KASTAMONU opened the largest woodworking plant in Europe
on the territory of the special economic zone (SEZ) Alabuga (in the Yelabuzhsky district of the Republic
of Tatarstan). The total capacity of the plant in SEZ Alabuga will amount to 1.8 million m³ of products
per year, and will be the largest woodworking plant in Europe, placing KASTAMONU in the top four of
the leaders of the world woodworking sector. The total investment of funds amounts to 600 million
US Dollars. The investment project is being realized in phases, and as of today the first phase, costing
$350 million, has already been fulfilled: Fully automated MDF production (475,000 m³) and flooring
(20 million m²) have been implemented. The second phase will involve the start of construction of the
second MDF line (450,000 m³).
The rich source of Russian raw materials
and sales opportunities make it possible
for the company to hold its own on
the world market. The project is being
realized in close cooperation with the
local energy authorities, who have
fulfilled a whole range of measures to
create a favorable investment climate
in the Republic of Tatarstan. In the
event of the successful realization of
the project, KASTAMONU will enlarge its
presence on the Russian market. With
a view to shedding some light on the
project's details in our magazine, we
have interviewed the Vice President
of KASTAMONU, Mr. Onur Güven.
Mr. Guven, in conditions where the inter-
national investment rating of Russia is going
down, the KASTAMONU company is actively
investing in the Russian economy. This,
from a European investor's point of view,
is not very logical. What did you take into
consideration when making your decision to
invest in Russia?
Our company is part of an international holding
which has a large number of factories not
only in Turkey but also abroad: in Bulgaria,
Romania, Bosnia and Herzegovina, and Russia.
The economic situation in the company's regions
of operation has, of course, a certain influence
on the development of our business. But we
in our activities are trying to adhere to the
principles of strategic planning for a period of 5
and 10 years, and not for the short term. Thus,
in accordance with the 5-year plan, we intend
to actively develop our business in Russia. We
have carefully evaluated the market situation,
possible risks and other factors, and decided
to invest in Russia. It is important for us for
several reasons: it is an emerging market, it is
rich in natural resources which are of definite
interest to us.
As you once mentioned, you have a plan to
invite to "Alabuga" some Turkish partners
-furniture companies. Is this still the case?
What are KASAMONU's aims in relation to
this? Is it related to KASTAMONU's desire to
guarantee sales by tested Turkish partners
through many years of cooperation? Are
these companies interested in entering the
Russian market? What is their motivation?
Were these plans prompted by the capacity
of Tatarstan and neighboring areas, who
cannot consume all the products produced
by the KASTAMONU factory?
The KASTAMONU company supports the
initiative of the republican authorities on the
issue of forming a furniture manufacturing
cluster in the region. We have come to Russia
with serious intentions and for a long time,
that is why we are examining the possibility
of working with furniture producers on the
territory of the Republic of Tatarstan. It would
be a great help to their operation, because
the transport costs for board delivery are
significantly reduced.
On our part we are ready to continue developing
production to achieve the output, needed for
furniture producers. In particular in 2015 we
plan to start building the second stage of the
plant, which will make it possible to increase
our capacities for MDF board production up to
900 thousand m³ per annum. We have started
production of the glossy MDF boards EvoGloss,
which are widely applied in the production of
facades.
As for the sales policy, currently the handling
company "Bosfor Group" is dealing with the
realization of the product in the Republic of
Tatarstan, that is why there should not be
any problems with the product supply to the
members of the furniture cluster in the region,
that is to say the furniture producers. Even in
the case of a shortage of the product on the
All-Russian market.
We offer not only high-quality, certified products,
but also attractive prices in comparison with
foreign competitors. Therefore, at present we do
not have any problems with sales. We have dealers
in different regions of Russia. The industry today
is experiencing a need for quality and affordable
products and the KASTAMONU company is ready
to meet this demand. It is expected that about
75% of the plant's produce is to be sold in Russia.
The remaining 25% will be exported to Asia and
Europe.
A lot of experts say that the Russian labor
market is short of qualified staff. What can you
Sempekamp
Contific
say about that? How does KASTAMONU solve
this issue, especially when you are looking
for top-managers and mid-level managers or
technical specialists?
The construction of the plant has been finished
thanks to the efforts of two parties: local
and Turkish specialists. In our practice, we
always try to maximize the potential of local
professionals in the operation of our facilities.
The general scheme is as follows: within six
months or a year before the launching of a
plant, we select staff, hire them for jobs and
conduct their training on probation at the
existing facilities of the company in Turkey.
Then, after completion of the equipment
installation and launching of production, a
group of Turkish specialists monitor production
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