Investment project II

Idea: OSB (Oriented Strand Board) plant construction.
Cost of the project: 153,6 million USD.
Pay back period: 5,8 years.

Project is aimed to solve the problem of processing of low-grade timber, such as pulpwood and low-graded pine, deciduous and dark-colored coniferous saw logs, which are not used in manufacturing.

The idea was developed by scientific research institute for wood CJSC “VNIIDREV” and it provided a report (business-plan) of OSB manufacturing with productivity 400 thous.cbm per year (1200 cbm per day) in Ust-Ilimsk (Irkutsk region) for JSC “Ruslesprom”.

Oriented Strand Boards are highly competitive among the plywood of coniferous wood materials at the market of materials for the production of low-rise wooden houses and manufacture of large tare and packing. The OSB production is the youngest and actively developing branch of world industry of wood boards.

According to the calculations make by experts of CJSC “VNIIDREV”, the volume of necessary investments is  153.6 million USD, the term of plant construction, equipment manufacture and assembly amounts to 18 months.

  • After the enterprise will be up and running at full capacity, the value of goods output will make 136.3 million USD p.a., profit – 36.7 million USD p.a.
  • The term of project payback from the start of plant operation is  4.3 years, from the beginning of plant construction – 5.8 years.
  • Predicted domestic (Russian) demand for OSB by 2010 will make 400—600 thous. cbm per year. Japanese partner companies have confirmed, that they are ready to get 500 cbm OSB of brand “Ruslesprom” annually.
  • For realization of the project the enterprise possesses an industrial platform with necessary industrial premises and an adjoining traffic intersection, both automobile, and railway. The company has own harvesting base with annual yield from felling 176 thous. cbm and an opportunity of it increasing up to 1000 thous. cbm.
  • Total cost of the offered projects is 175.573 million US Dollars; the time of recovery of outlay is 10 years. As a result of both projects, JSC “Ruslesprom” will be a large timber manufacturing company with a turnover 165 million US Dollars p.a. and net profit 42 million USD per year.
  • Social effect: when implementing the said investment project there will be established up to 350 new workplaces at the OSB plant. Additionally up to 1400 workplaces will be established in related production areas.