Vyborgskaya Cellulose, Russian manufacturer for paper and paper pulp is ready to begin pellet production, used to generate warmth and electricity in its factory from Vyborg, by the end of the year.
The factory, located in North Western Russia will produce apox. 900 000 tones of pellets/year, thus becoming the largest factory of it’s king from the world.
The Swedish company Ekman & Co, which has an exclusive sales contrcact with Vyborgskaya wants to sell large quantities of pellets to industrial consumers. Arnold Dale, vicepresident of Ekman declared : « We also have smaller contracts with Scandinavian factories, for supplying wood pellets. We are currently talking to potential pellet distributors from key European markets » . « The price will not be smalles due to the large scale production » , Dale added.
The pellets will be made from round wood. Vyborgskaya is renting, based on 49 year long contracts, forests from the regions of Leningrad and Pskov. Dale added that raw material represents 60% of the total production costs.
Currently, US manufacturers »fuel » most of the plants in Western Europe ; the local demand is met by European producers. « We wish to compete with the Americans, especially because of the reduction of transportation costs and smaller transport distances. » , Dale stated.
In february, Vyborgskaya estimated the cost of the factory to 100 million usd. Of these, 14 million usd were supplied by the VTB Group, 10 million usd by the Tavrichesky Bank.
Source: http://news.google.com |
