Norwegians Processing Russian Timber

<BR>The first load of processed timber has been released from a factory at Kolpino, built jointly by the Norwegian concern Moelven Nor 1st AS and the AOOT Energomashstroi construction company.<BR>Moelven-Energo was created by the Russian and Norwegian companies together with the European Bank of Reconstruction and Development.<BR>$4.75m was invested in the factory, and the Norwegian company supplied equipment and management personnel, while Energomashstroi rebuilt the factory premises and the EBRD financed work. The business is expected to 'break even' in 3-4 years, producing various wood products at the totally mechanised factory.<BR>"In Russia there are huge timber reserves: the main thing is to find a reliable supplier of quality material," says Production Director Torbiorn Brevig. The main distribution market will also be Russia, although products will also be exported to Norway, Denmark and Sweden.<BR>In St Petersburg alone there are at least 30 timber-processing companies, with huge amounts of quality wood originating from Karelia, so Moelven-Energo is bound to meet some stiff competition. Specialists questioned by DP say that the company's most promising aspect is the production of relatively complex glued constructions. Vladimir Anisimov, deputy director of Technopark Ltd., which has similar production facilities, said that, "the new company will have no problems finding a niche in the market."