31 March 2023
Another investment project in the forestry sector of the Nizhny Novgorod region, which Volga implements, has been included in the list of priority investment projects in the forest development by the Order of the Deputy Minister of Industry and Trade of Russian Federation Vasily Osmakov dated February 20, 2023.
As part of the project implementation, it is planned to develop the packaging paper production with an increase in raw material processing capacity and energy efficiency, including re-profiling of paper machine No. 6 and organization of logging production in the Nizhny Novgorod region.
Expansion of its own raw material base is planned on the area of about 100 thousand hectares, with a calculated cut-over area of almost 210 thousand cubic meters annually, 243 new workplaces will be created, including 144 high-performance workplaces.
Investments in the project will amount to about 6.8 billion rubles, and at the same time to date in difficult economic conditions, the Company has fulfilled the project budget by 22% (1.5 billion rubles).
It is planned to carry out timber harvesting on the forest areas provided in the framework of the investment project without the bidding procedure and on favorable terms for lease payments.
In terms of implementation, the investment project is designed for 3.5 years and started in the second quarter of 2021. Thus, the exploitation the facilities being modernized and created is planned for the first quarter of 2025.
As a result, the Сompany efficiency will increase by 140 thousand tons of paper per year due to the wood processing infrastructure modernization, the quality of produced types of containerboard (liner, fluting) will increase, and the Company's product portfolio will expand.
Execution of this investment project will allow JSC Volga to additionally involve hardwood trees in paper production and become the largest vertically integrated enterprise of the forest and wood processing industry in the Nizhny Novgorod region.
Volga press service
