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The Segezha Group of Companies plans to construct of a new plywood production

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Chairman of the Government of the Russian Federation Dmitry Medvedev has signed Order No. 37 on foundation of Galich Advanced Socio-Economic Zone (Galich ASEZ) in the City of Galich, Kostroma Region. According to the document, creation of the ASEZ will help diversify the economy of the urban district, reduce its dependence on the only city-forming enterprise, increase investment attractiveness of the city, as well as create new jobs and attract investments.

The Segezha Group of Companies, a forest industry enterprise, and part of Sistema JSFC, plans to invest more than RUB 8 billion in construction of a new plywood production facility on the territory of the Galich ASEZ.

“Segezha Group plans to produce a total of 320–350 thousand cubic meters of birch plywood per year by 2021,” Mikhail Shamolin, President of Segezha Group, said. “This will become possible after we open the new production site in Galich in accordance with the agreement we signed with the Kostroma Region authorities.” In a number of interviews, Gov. Sergey Sitnikov of Kostroma Region said that the construction of a large plywood combine in Galich would allow the city’s economy to become more diversified, which will not only have a positive impact on the economy, but also contribute to improving the region’s social stability.

“Although the company already has two plywood combines in Kirov Region, one of which was launched in 2018, Galich will be a unique experience for us in some sense, as this will be a greenfield project,” said Maria Vasilkova, Member of the Board and Advisor to the President of Segezha Group. “The new plant in Galich will put out some 130,000 cubic meters of large-format premium plywood per year.” According to the advisor to the president, the volume of investments is considerable, and without state-wide and regional support implementing such a project would be impossible.

“The ASEZ mechanism, on our case, is one of the most effective stimulation mechanisms, and the news of state support for our project was a call for action for our company,” Maria Vasilkova said. “Construction of the Galich Plywood Combine will become a part of the “International Cooperation and Export” National Project. Segezha Group will create an absolutely export-oriented business based on best world practices in Galich ASEZ.

The Segezha Group project in Galich has been approved by the Committee for Investments of Kostroma Region Administration. The investor has been allocated an area of 37.5 hectares of leased land to build the new facility. According to Nikolay Ivanov, head of the Government Relations Directorate of Segezha Group, the first stage of the Galich Plywood Combine will be put into operation as soon as in 2021.

“All the design and coordination processes for the new investment project are nearing completion. Kostroma Region has been supporting the company most actively. Gov. Sergey Sitnikov has asked the government departments responsible for economic development and the forest industry sector to support the project from the moment construction begins to commissioning of the new enterprise,” said Nikolay Ivanov, head of the Directorate for Government Relations of Segezha Group. Raw materials for the new production will be provided by forest areas with the total timber production volume of 1.5 million cubic meters, as allocated by the Forest Management Department of Kostroma Region.

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