Russian plywood to be processed at Riga port
Russia^apostrofs;s birch plywood producer "Sveza" plans to invest USD 5 million into opening a plywood processing enterprise at the Riga Port, the newspaper "Dienas Bizness" reports today.
Russia's birch plywood producer "Sveza" plans to invest USD 5 million into opening a plywood processing enterprise at the Riga Port, the newspaper "Dienas Bizness" reports today.
"We hope that this enterprise could launch operations already in 2003, we already have some experience in implementing similar projects - plywood plants," Vadim Yurin, director of "Sveza", a member of the holding company "Severstal", explains.
The enterprise in Riga will provide the opportunity for "Sveza" to compete with various products, because it currently exports untreated birch plywood. Besides, in launching the plywood plant in Riga, "Sveza" will cut the supply deadline for its Western clients to only a few days. Plywood is currently supplied in 7-10 days.
The project's documents are now being worked out. Yurin explains the intention to place the plant at Riga port with import operations because birch plywood meant for advanced processing will be imported from "Sveza" birch plywood production plants in St. Petersburg and Kostroma.
According to Yurin, it is expected that investments in Latvia will be returned in 3-5 years. A separate company could be set up for founding the plant, which could give employment to about 100 people.
The plywood processing plant will be a rival of the local joint-stock company "Latvijas Finieris", because both market their products mostly in European countries.
A part of "Sveza's" products will also be sold on the Baltic and Latvian markets. In order to raise competitiveness of its producers abroad, Russia has cut customs export tariffs for birch plywood twofold.
Juris Bikis, the president of "Latvijas finieris", believes that the news on the opening of a "Sveza" plant in Latvia is "more good than bad" because this means that Russian plywood will no longer be dumped, which has considerable impact on the market. Even though "Sveza" will be a "Latvijas Finieris" rival, Bikis believes that "Sveza" could later become an ally in birch plywood's competition with other materials.
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"We hope that this enterprise could launch operations already in 2003, we already have some experience in implementing similar projects - plywood plants," Vadim Yurin, director of "Sveza", a member of the holding company "Severstal", explains.
The enterprise in Riga will provide the opportunity for "Sveza" to compete with various products, because it currently exports untreated birch plywood. Besides, in launching the plywood plant in Riga, "Sveza" will cut the supply deadline for its Western clients to only a few days. Plywood is currently supplied in 7-10 days.
The project's documents are now being worked out. Yurin explains the intention to place the plant at Riga port with import operations because birch plywood meant for advanced processing will be imported from "Sveza" birch plywood production plants in St. Petersburg and Kostroma.
According to Yurin, it is expected that investments in Latvia will be returned in 3-5 years. A separate company could be set up for founding the plant, which could give employment to about 100 people.
The plywood processing plant will be a rival of the local joint-stock company "Latvijas Finieris", because both market their products mostly in European countries.
A part of "Sveza's" products will also be sold on the Baltic and Latvian markets. In order to raise competitiveness of its producers abroad, Russia has cut customs export tariffs for birch plywood twofold.
Juris Bikis, the president of "Latvijas finieris", believes that the news on the opening of a "Sveza" plant in Latvia is "more good than bad" because this means that Russian plywood will no longer be dumped, which has considerable impact on the market. Even though "Sveza" will be a "Latvijas Finieris" rival, Bikis believes that "Sveza" could later become an ally in birch plywood's competition with other materials.
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