OREANDA-NEWS. December 28, 2009. Another project of establishing OSB capacity in Russia was delayed. Oris LLC, an affiliate of ChTPZ (Chelyabinsk tube-rolling plant) group, did not manage to implement an investment project which entailed construction of a processing mill in Kirov region and changes the site layout to Tchaikovsky community of Perm region, the company said.

In February 2008, Kirov region administration and Oris LLC concluded a declaration of understanding on implementing the project in Vostochnyi community of the region. Total amount of investments was evaluated in 8 billion roubles (USD 258 million), a certain allowed forest cut volume was allocated for the project.

Kirov region administration says that it was planning to cancel the agreement because the company has not started construction. The allocated site was not used in 2009, thus the authorities are seeking for compensation. ChTPZ group press service informs that it started negotiations with Perm region authorities because the construction site in Kirov does not suit the company technically. Meanwhile, the company stated that the final decision upon possibility of constructing the mill in Tchaikovskiy will be taken in the end of the year.

It is not the first try to establish OSB production in the region. In the spring of 2008 Nedra LLC presented a project of constructing Dobryanskiy processing zone having the square of 79 ha. It was planned to establish production of large-format and laminated plywood, while OSB will become a sideline product. The project was estimated by its developers in 5 billion roubles. In order to implement the project the company attracted joint Russian-Canadian venture Canadian Forest Technologies. However, the company did not manage to negotiate successfully with the investors, and the project was suspended. A project of constructing OSB mill existed also in Krasnovishersk, where owners of a bankrupted Vishera pulp and paper mill planned to build a mill on the site of a former enterprise producing wooden housing construction details. Earlier Oris LLC also planned to invest 7 billion roubles in another OSB project. The production would create around 300 new jobs.