A group of Swiss entrepreneurs, headed by Alan Broglie, has signed an agreement with Russian TVS and Tehrezerv companies for the construction of a plant for deep wood processing and pulp production in the Russian Dagestan region.
The preliminary cost of the project is 2.44 billion rubles (USD$70 million).
The majority of future production of the new plant will be sold in Switzerland, Germany and the domestic Russian market.
During the first phase of the project, which will last for two years, the volume of timber harvesting at the new enterprise will total 260 thousand m3 per year and will be doubled later.
Tax payments to budgets of all levels will be about 700 million rubles a year.
