OREANDA-NEWS. September 11, 2007. A solemn ceremony of commissioning Vyisky wood-working combine (WWC) has taken place in Nizhni Tagil (Sverdlovsk Region).  The project has been implemented by ITERA, as well as by CJSC Uralsevergaz and USG-stroy, its affiliates.

Edward Rossel, the Governor of Sverdlovsk Region, said at WWC opening ceremony that ITERA courageously tackled res nova, and dealt successfully with the task. E.Rossel said that the commissioning of the modern WWC was "the first step on the way to revival of logging operations around Nizhni Tagil and construction in the area of similar complexes" intended to play an important role in the development of mechanical engineering, transportation and the related industries in the region and in Russia.

Vladimir Makeev, Chairman of the Management Board of ITERA Oil and Gas Company, pointed out that it was the ninth year that the Company has been working in the region. He said it was for the first time, though, that the Company commissioned an industrial facility unrelated to its core business. "We are trying to diversify our business, to develop new  and promising businesses to help increase the contribution into the economy of Sverlovsk Region", - V.Makeev stated.

Vyisky WWC was constructed within less than one and a half year-long period of time. It was equipped with the newest equipment. Investments in the project were Rubles 593 million. The enterprise utilized high-level processing of wood technology and intends to produce goods for  export purposes. The combine shall be processing up to 65 thousand cu m of timber and producing 24 thousand cu m of finished goods (running trim and furniture board from pine and birch).

The plan is that an overall production of the enterprise with 360 employees shall reach the design capacity before the end of the year.

The Sverdlovsk Region has good source of raw materials: the timberland area accounts for 86 percent the Region area, while timber resources are about 2.2 bln cubic meters. Operation of Vyisky WWC shall ensure a remarkable increase in production of high-quality products from wood of the Urals.

ITERA, through Uralsevergaz, its affiliate, has been supplying Sverdlovsk Region with natural gas since 1999. It is an active player in   Installation of Gas Service Program of the Region. It also implements housing construction and social facilities construction projects, as well as the projects of building additional electricity generating capacities. This April, Edward Rossel, the Governor of Svedlovsk Region, and Igor Makarov, Chairman of the Board of Directors of ITERA Oil and Gas Company, LLC, signed a new Agreement on Cooperation between the Government of the Region and the Company for the period until 2015.

The status of implementation of the current agreement was examined during the meeting between Edward Rossel and Vladimir Makeev, Chairman of the Management Board of ITERA Oil and Gas Company and Vladimir Kuzushin, General Director of Uralsevergaz. It was pointed out that all contractual commitments related to natural gas supply and the Installation of Gas Service Program of the Region, as well as the planned investment programs in power engineering, natural gas chemical processing, construction and in other areas of economy were being successfully implemented.