OREANDA-NEWS. March 10, 2011. Belarus and Lithuanian Vakaru Medienos Grupe have signed an investment agreement to create a vertically integrated woodworking factory in the free economic zone Mogilev with projected investments of 64.3 million euros. The document was signed by Chairman of Mogilev region administration Petr Rudnik and representatives of the Lithuanian company in Mogilev.

The new complex will include a plant to make particle boards, a production of veneer furniture parts and a plant producing carcass furniture. The complex will start operating in the first half of 2012.

Rudnik noted that the entire output would be exported.

Capital investments in the project are projected at 58.264 million euros. The new productions will create a total of 872 new jobs. The partner relations of Vakaru Medienos Grupe and Swedish IKEA will ensure sales of Belarusian make via the chain operated by the concern.

Vakaru Medienos Grupe in October 2010 signed an agreement with the region administration to create a forestry cluster.

Vakaru Medienos Grupe was established in 2002; it invests in woodworking and related productions.