JAPANESE COMPANY PLANS TO INVEST IN TIMBER MILL IN SAKHALIN
10 August 2016
A Japanese investor may open a new sales market for the timber mill.
Japan-based Iida Group Holdings, specialising in private housing construction, multi-family houses and in production of sawn lumber, plans to become a co-investor in a timber mill construction project in Sakhalin. This became known after the meeting between Deputy Chairman of the Regional Government Dmitry Nesterov and representatives of the Japanese holding company, as reported by RIA Sakhalin–Kuril Islands.
After reaching the planned production capacity, the annual volume of harvested timber will amount to 747 thou cubic m. At least 50,000 wooden house structural elements, 150,000 of export-quality cut and dried lumber pieces, 100,000 cubic m. of wood pallets and chips will be produced. “This is a big investment project to develop wooden house building in the north of Sakhalin, to be operated by BM-Sakhalin, JSC, with the Khabarovsk-based BM Group and the Sakhalin government as its main stakeholders”, Mr. Nesterov describes. The Japanese partners might chip into the operating business as shareholders. They will provide an additional sales market for the lumber and will also share up-to-date stockpiling and milling technologies.
The sides agreed to meet once again in late September – early October this year to make a final decision.