Project description
and objectives:
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The proposed project comes within the framework of the Multi-Project Facility
Agreement signed with the client in 2002. It is a follow-on investment of an
existing client, OOO Setles, which is located in the village of Impilakhti
(Karelia Republic). The Impilakhti sawmill started operations in 2003. The
financing will be used for the modernisation and upgrading of the existing
sawmill, that will allow to manufacture more value-added products.
At the Impilakhti Sawmill kiln drying facilities will be added and production
capacity increased to 140 000 m3 per year. The number of employees is expected
to increase by 11.
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Transition impact:
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The project is one of the few foreign direct investments in the sawmill sector
in the region and is expected to play a positive role in promoting
technological, environmental, forest management and corporate governance
standards for the industry. This effect will be further enhanced by sending a
signal to the market that a leading international player has a strategy to
outsource processing to Russia.
Stora Enso promotes interactions with suppliers by transferring the necessary
skills and technologies to the logging companies operating in the region
through extending its wood procurement standards to the local suppliers,
creating a long-term sustainable demand for their products and upgrading the
regional transport infrastructure. The saw mill project sends a signal to the
market that a leading international player is changing its strategy from only
importing raw logs to outsourcing processing facilities to Russia. Moreover
the expansion of the existing saw mill is part of a longer-term plan to build
up a critical mass of wood procurement needed to support a pulp mill operation
in Russia.
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The client:
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Stora Enso is an integrated paper, packaging and forest products company
producing print and fine papers, packaging boards and wood products, areas in
which the Group is a global market leader. Stora Enso sales totalled EUR 13.2
billion in 2005. The Group has some 45,000 employees in more than 40 countries
in five continents and an annual production capacity of 15.7 million tonnes of
paper and board and 7.4 million cubic metres of sawn wood products, including
2.8 million cubic metres of value-added products. Stora Enso is listed on the
Helsinki, Stockholm and New York stock exchanges.
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EBRD finance:
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The EBRD would provide financing up to EUR 19 million in the form of A/B loans
syndicated to commercial banks.
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Total project cost:
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Total investments EUR 31.75 million, including EUR 12.5 million capital
investments.
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Environmental impact:
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The Project has been screened MPF. In accordance with the Environmental
Procedures agreed for the existing multi-project facility, Stora Enso has
submitted to the Bank a Final Environmental Report (FER). The FER summarises
the environmental studies and environmental due diligence undertaken by Stora
Enso as well as the environmental, health and safety (EHS) issues associated
with the Project and measures for their mitigation. The Bank’s environmental
specialists have reviewed the FER and found the submitted information
satisfactory, providing evidence that the MPF sub-project has been structured
to meet Russian EHS requirements and EU environmental standards and that it
will meet the Bank’s environmental requirements.
The investigations consisted of an environmental impact study carried out by
independent consultants and Stora Enso’s specialists in accordance with the
Russian permitting requirements. The study showed that the key additional
environmental impact associated with the expansion project is the air emission
of dust from the new 10 MW bark boiler, which due to selection of European
based technology will meet local and EU environmental standards. The
incremental wood raw material will be sourced from Stora Enso’s current wood
procurement operations by redirecting to the mill some of the wood that is
currently exported. The introduction of wood pelleting line will enable the
sawmill to continue utilising 100% of the wood raw material either as
products, woodchips sold to pulp mills or as fuel in energy production.
The Sawmill will continue adhering to Stora Enso's corporate policies and
standards for the environment, occupational health and safety and social
responsibility, including wood procurement procedures ensuring the wood for
its operations will meet internationally recognised standards of sustainable
forest management. This provides that the environmental, health and safety
impacts of the Sawmill will continue to be negligible and efficiently
mitigated. The Sawmill is implementing Stora Enso's corporate EHS policies and
standards, including ISO 14001 environmental management system and aiming at
integration in the Stora Enso's corporate wide EMAS (EU Environmental
Management and Auditing System) certification of sawmills. It is
systematically monitoring and reporting its environmental footprint in line
with Stora Enso's corporate standards for internal and external reporting to
ensure its compliance with Russian and EU environmental standards. Stora
Enso’s environmental reporting to date has shown sound management of
environmental and social issues. The Sawmill is committed to continue working
in a close relationship with the local community.
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Technical
cooperation:
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None.
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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Company contact:
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Juha Kukkola,Vice-President,
Russian production Group,
Stora
Enso Timber
Email: Juha.kukkola@storaenso.com
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EBRD contact:
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Svetlana Sikan, Operation Leader: sikans@ebrd.com
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Business opportunities:
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For business opportunities or procurement, contact the client company.
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General enquiries:
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EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com
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