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13.10.09 —SVEZA starts up new facilities for 5õ10 size plywood manufacturing

The start up of new production is the developing of consumer market for SVEZA. The production of high quality certified product will give additional advantages to SVEZA on the markets.

New high-technological equipment is installed that allow SVEZA to increase capacities in 5x10 size. Thus the planned production volume  for 2010 in 5x10 is about 32 200m3, in 2011 the production volume will reach 50 000m3. The total area of manufacture is about 7 500m2.

About 60% of production load will be realized at export markets: Europe, CIS, Asia, Africa, North America, the rest volume will be realized at domestic markets.

The governor of Vologda region, Vyacheslav Pozgalev, participated in official opening. V.Pozgalev said: “In the market economy will survive the company that is always on the shove, who invest in production development, master new manufactures. Current economical situation persuades in stabilization. We see business recovery in all industries; we see some recovery on the markets where Vologda manufactures participate. The start up of new facilities at Novator just confirms the previous words. The management of SVEZA and Novator belongs to rare group of forward looking managers. They oriented on the product with higher quality that is in demand. New Novator facilities mean new work places which are very important in difficult social-economical situation; taxes that will go to people of Vologda region. This is also new high quality product that is in demand not only in Russia but also abroad.

The CEO of the SVEZA company, Andrey Kashubsky noted: "Start-up of new production - is a logical step of the company’s strategy. Our investments are long-term. We hope that we can benefit our employees and partners, as well as Vologda Region citizens. New production will increase the region revenue and create new jobs in Velikiy Ustyug.

The environmental effect of new production will be within the regulatory concentrations. It is confirmed by Office Rospotrebnadzor report.

About “Novator” mill

Established in 1906. Joins the SVEZA in 2002.

The main business profile is a plywood manufacturing.

Novator has its own power plant (3 MW-h), which provide electricity to the mill, organize effective waste recycling management and deal with environmental problems.

Plywood production was 98,133 cubic meters in 2008, 59,723 cubic meters in January-August of 2009.

About SVEZA company

SVEZA is a major plywood and particleboard manufacturer in Russia. It is also the biggest birch plywood producer in the world. SVEZA's products have rightly gained customers' confidence in 60 countries worldwide. SVEZA's production operation is deployed at five Russian facilities: UIFK (Leningrad region), Fanplit (Kostroma region), Novator (Vologda region), PFK (Perm region), Fankom (Kostroma region). There are about 6000 employees in the company. SVEZA produce birch plywood (MR an WBP glue), film faced plywood, particleboard, melamine faced particleboard, I-beam, bed slats. Plywood sales was 602,000 cubic meters, particleboard sales was 316,000 cubic meters in 2008. SVEZA products are adapted for use in various industries: furniture industry, transport engineering, construction, flooring, packaging.

SVEZA company is the private investment project of A.A.Mordashov.