Foundation stone laid for major project in Russia

31.10.2008 -

On 24th October, the foundation stone was laid for a new timber processing complex in Russia. In the town of Boguchany (Krasnoyarsk region), it is planned to set up four plants for timber processing, including a pulp and lumber mill, the construction of which is to be taken over by MAN Ferrostaal. Contracts for the project have still to be finalised. MAN Ferrostaal is considering a possible shareholding in the KrasLesInvest development company.

At an early stage of the project, KrasLesInvest commissioned the Canadian company KSH Solutions with carrying out a feasibility study of the technical aspects; MAN Ferrostaal meanwhile looked into the financial feasibility. With the results of these studies proving to be positive, the project now enters the contract definition phase.

The Krasnoyarsk region has vast timber reserves which could yield even greater economic benefits if opened up to further processing. The intention is to become less dependent on lumber exports and to concentrate more on the manufacture of finished goods. Dr Matthias Mitscherlich, Chairman of the Board at MAN Ferrostaal, sees the construction of the timber processing complex as a major contribution to strengthening the Russian economy: "The aim is to boost value-adding capacity in Russia and to plough more of that added value back into the country."

The basis for this extensive project is an initiative of the Russian government aimed at building up the domestic timber processing and manufacturing industries. The contribution that this project is expected to make to the economic development of the Krasnoyarsk region is thus highly significant. It is expected that the new timber processing complex will act as a spur for further industrial development in and around Boguchany, as experience has shown that, following the construction of this sort of complex, other industries are attracted to the vicinity, leading in turn to an expansion of local infrastructure.

Environmental considerations play a major role in the construction of this new industrial complex. Modern filtering plants will be installed, complete with extensive protective measures to avoid any contamination of the rivers and the air. The project will conform to environmental regulations as they apply in the Krasnoyarsk region and which are even more stringent than those enforced in Germany.

In 2006, MAN Ferrostaal had acquired RWE’s pulp business. The employees, situated in Duisburg and in Southeast Asia, along with their expertise, contacts and projects had been integrated into MAN Ferrostaal then. In addition, MAN Ferrostaal has taken a 22% interest in KSH, RWE Engineering’s former company covering this segment in Canada, and is continuing its long-term cooperation with this entity.

About MAN Ferrostaal AG:

MAN Ferrostaal is a worldwide supplier of industrial services for the construction of large-scale industrial plants and machine supply. As a general contractor for plant construction, the company offers project development, project management and financing solutions for turnkey plants in the areas of solar thermal power plants as well as biofuels, petrochemical and industrial plants. In ccoperation with manufacturers of machines and production lines, MAN Ferrostaal offers sales and services in the areas of automotive industries, print and packaging, piping, ships and transport solutions. With 4,200 employees MAN Ferrostaal is represented in more than 60 countries. The company achieved a turnover of EUR 1.4 billion in 2007.

MAN Ferrostaal is a subsidiary of MAN Aktiengesellschaft, Munich. The MAN Group is one of Europe’s leading manufacturers of engineering equipment and vehicles, generating annual sales of around EUR 16 billion. MAN supplies products, systems and services to the capital goods industry and employs approx. 55,000 people worldwide. The core areas operated by the MAN Group, Commercial Vehicles, Industrial Services, Diesel Engines and Turbomachines, all hold leading positions in their markets. MAN is a member of the DAX German Share Index, Germany’s top 30 public limited companies.