Russian Forestry and Wood Supply Operations Analysis

PRIORITY INVESTMENT PROJECTS PRIORITY INVESTMENT PROJECTS THE PROJECTS EXCLUDED FROM THE LIST Volume of Volume of Investment, million Rubles. Investor / Name of Project / City Incl. Total Borrowed Funds ૩૫૧ ૩૦ ૨૩umon consumed raw material, th m³ Allowable cut size, thsd. m³ Types of Products and Annual Production Volumes Imployment impact (number of man) Ivanovo Forest Ivanovo oblast Sawn timber - 15.3 thsd m³ Wood tables -50 thsd pieces Wood chairs -200 thsd pieces 307.7 307.7 110 110 Production of complex processing of raw materials The project was excluded from the list of priority projects in June 2014 because of failure to reach commitments Shabalinsky DOZ Kirov oblast Creation of timber-processing plant based on raw materials of Svechinsky forestry 341.1 341.1 146.6 Parquette board - 100 thsd m² Moulded strips-1.9 thsd m³ Pellets 10 thsd t 529 2009-2013 6,3 33 Period of Construction Payback Period, Number of Years Investor / Name of Project / City Investment, million Rubles. Incl. Total Borrowed Funds Volume of the consumed raw material, th m³ size, thsd. m³ Allowable cut Types of Products and Annual Production Volumes Imployment impact (number of man) Period of Construction Payback Period, Number of Years Gazkom Sawn timber 7.8 thsd m³ Perm territory, Chusovskoy district Glued timber - 6 thsd m³ 406 350 80.7 80.7 Construction of house-building plant Moulded strips 5 thsd m³ Cement bonded particle board - 400 thsd m³ Wood charcoal - 0.8 thsd t Technological wood chips - 16.8 thsd m³ 215 2009-2015 9,2 Excluded in June 2012. The reason - lack of investment capital DalEuroLes Khabarovsk territory 3,810 3,810 850 480 Sawn timber-200 thsd m³ Glued plywood-190 thsd m³ 278 2009-2015 7,2 Sawn timber-5.95 thsd m³ Construction units - 6.5 thsd m³ Round logs 10 thsd m³ 146.6 Tare boards - 10.6 thsd m³ Pallets 172.5 thsd pieces Glued timber - 9.2 thsd m³ Fuel briquettes -2.4 thsd t Production of glued plywood and sawn timber Excluded, and declared bankrupt in March 2014 140 2009-2015 5,4 Mostootryad-T Amur oblast, Solnechnyiy district 1,225 1,200 286 75.7 Veneer 85 thsd m³ 400 2008-2010 5 Development of timber-processing complex Excluded in December 2011. The main reason was lack of investment capital Was excluded in the beginning of 2015 Syktyvkar OSB Plant Forestry Managing Company Kirovles • Kirov Development of timber-processinf and creation of OSB production targeted for low-rise house construction Bankruptcy in 2013 350 No info No info No info Sawn timber, and OSB SeverDomStroy ° Kirov oblast No info 2012-2016 4,8 Republic of Komi, Syktyvkar 5,500 No info 516.2 516.2 OSB-450 thsd m³ No info 2008-2011 10 OSB Plant Creation of deep woodworking plant Square sawn plank - 5.43 thsd m³ Planed profile units for construction - 23.4 thsd m³ 336.6 No info 156.2 No info 173 2011-2015 No info Glued construction timber - 6,000 m³ Round timber workpieces for house construction - 11.2 thsd m³ Excluded because of insolvency. The managers are being tried on charges in Italy including tax evasion SiamzhaLesProm Excluded at the beginning of 2015 Baikal Nordic Republic of Buryatia, Ulan-Ude Integrated wood-processing and building of infrastructure for the timber-processing object 1,500 No info 450 500 Sawn timber - 220 thsd m³ Vologda oblast 304 304 126 88.7 Glued timber - 12 thsd m³ Moulded strips-16.2 thsd m³ 176 2009-2014 7,5 Increase of production of sawn timber, moulded strips and glued beam Excluded because of bankruptcy of the enterprise 285 2008-2012 5 CentroWoodCom Sawn timber - 177.5 thsd m³ Woodworks -59.9 thsd m³ Republic of Komi 2,768.6 692.2 1,840 Sets of pre-fabricated wood houses - 16.8 thsd m³ 1,840 1043 2008-2011 9,1 Tare Pellets 15.7 thsd m³ 257.2 thsd m³ Center of deep (wastless) timber-processing Wood constructions - 108 thsd m³ 204 2008-2009 2,2 Excluded in 2013. Declared bankrupt because of failure to reach commitments. They failed to restart the project KharviSeverLes ⚫ Arkhangelsk Glued timber-95 thsd m³ 1,235.4 732.2 260 380 Technological wood chips - 86 thsd m³ 380 2007-2017 3,7 Building of the woodworking plant The plant was opened but went out of business because of non-payment of rent, and failure to reach commitments Mill of Wood Materials Invest 125 2010-2011 5,1 Novgorod oblast, Okulovka 8,532.7 7,785.7 634.6 653.9 Sawn timber -97.1 thsd m³ OSB 179.2 thsd m³ Sets of pre-fabricated houses and frame-houses- 224.2 thsd m² 1393 2008-2011 10,3 Timber Industrial Company Ryazan Development of timber-processing complex Excluded in October 2013 because of failure to reach commitments (logging was being carried out, round log was being sold, but the construction of a wood-processing plant was not fulfilled) 650.4 No info 424.2 424.2 Square sawn plank - 147 thsd m³ Unedged board - 36.5 thsd m³ Pallets 1,200 thsd pieces Glued timber - 60.1 thsd m³ Furniture board - 33.2 thsd m³ Rotary-cut veneer - 30.3 thsd m³ Excluded at the end 2013. Forest lands have been withdrawn from lease Osetrovsky LDK Irkutsk oblast, Ust-Kut 1,938 1,938 787 787 Plywood - 100 thsd m³ Organization of glued oversize softwood plywood Excluded Glued timber- 12 thsd m³ Stroyservice (it used yo be fulfilled by 000 Lesprom) Kaluga oblast 1,300 1,075 Moulded strips- 6 thsd m³ Parquette board - 0.5 thsd m³ 200.3 238.2 Window units - 12 thsd m³ Door units - 15 thsd m³ 584 2008-2010 8 Construction of woodwoking plant Fuel granules-33.6 thsd t Pallets 140 thsd pieces It was excluded in 2013 (logging was being carried out, round log was being sold, but the construction of a wood-processing plant was not fulfilled). An enterpreneur Alexey Uzhovsky tried realizing the project 'Lesprom', but ultimately he was only processing timber, offering a favourable rate. Uzhovsky was sentenced to imprisonment for fraud. Tajga Tranzit Vologda oblast, Velikoustyugskiy district Building of timber-processing plant Sawn timber - 36.6 thsd m³ 480.4 No info No info 99.2 Planed profiles - 17.5 thsd m³ Round logs -15.2 thsd m³ Workpieces for pallets - 8 thsd m³ No info 2011-2014 No info Logging 1.25 million m³ Excluded in February 2014 because of failure to reach commitments Minusinsky Les ⚫ Krasnoyarsk territory, Minusinskiy district Organization of logging, wood-sawing, woodworking, and board production within long-term forest lease 7,452.9 No info Planed profiles, glued timber, and untis for frame- 1,250 1,525.7 house construction - 129 thsd m³ OSB 3, and OSB 2 - 320 thsd m³ Chipboard - 260 thsd m³ House-building plant No information Aspek-Lesprom Kostroma oblast, Manturovo Building of a pulp-and-paper mill In 2012 the rented forest was withdrawn Bleached pulp -517 thsd t Chemi-thermomechanical pulp - 170 thsd t Chalk-coated printing paperboard - 100 thsd t 51,045 38,284 3,097 2,671.3 Chalk-coated box paperboard - 300 thsd t 2000 2009-2015 Coated label paper - 150 thsd t Coated book and magazine paper - 100 thsd t Office paper - 150 thsd t 10 10 East-Siberian Plant of Bio-Technologies Irkutsk oblast, Tulun 1,048 1,048 530 530 Fuel pellets - 106 thsd t 700 2008-2013 3,5 Organization of production of biofuel from sustainable non-food resources 1,557 2009-2015 5 GK Rostekhnologii stopped the project in 2009 Rosbioprom (used to be a part of Euroimp Sales AB) Pskov 1,000 No info No info Softwood sawn timber - 150 thsd m³ Hardwood sawn timber - 20 thsd m³ Technological wood chips- 124 thsd m³ 700 No info 2011-2014 No info Fuel wood chips-50 thsd m³ Pellets 100 thsd m³ Project Pskovsky LPK Planed impregnated sawn timber - 30 thsd m³ Excluded because of failure to reach commitments Balezinsky DOK ⚫ Republic of Udmurtiya, Balezinskiy district Modernization of the acting plywood and wood-sawing productions, 951 reshaping of furniture workshop, organization of logging works 761 323.4 Glued plywood - 100 thsd m³ 323.4 Sawn timber - 50 thsd m³ 1600 2008-2011 4 Wood pre-fabricated houses - 300 pieces The project was excluded at the request of the owner (Vnesheconombank refused to issue credit) 78 #6 (2015) RUSSIAN FORESTRY In the first part of 2013 it was announced that the project would have an investment of 500 million rubles and that the financing would be continued. In August 2013 the project was excluded from the list of priority projects. In 2014 000 Rosbioprom stopped its activity by reorganization in the form of merging with 000 Doctor Portnov's Clinic RUSSIAN FORESTRY #6 (2015) 79