Furniture shield production in Sharja municipal district of the region Summary

Title: Furniture shield production in Sharja municipal district of the Kostroma region

Investment volume: 1,6 billion rub.

Stage of implementation: investment proposal

Project coordinator: The Department of investment and industrial policy of Kostroma Region Administration Location

Vologda Region

Yaroslavl Region Kirov Region

Nizhegorodskaya Region

Railways Federal highway Regional motorways

Ivanovo Region Sharja municipal district Location

Sharja municipal district

The district’s territory includes: -regional motorway Nizhny Novgorod – – – Ekaterinburg;

- transport artery “St. Peterburg – Ekaterinburg” including the motorway “Kostroma – – Kirov – Perm”;

- Northern Railway – branch of OJSC “Rusian Railways”.

Distance to Kostroma City - 323 km Investment site

Total area : 30 ha

Category of land : industrial land

Infrastructure : - motorway with asphalt surface (motorway Sharja-Kotlas); - railway (in 7 km. distance); Motorway Sharja‐ - Power supply: substation «Zvezda» total Kotlas capacity 405 MW (free capacity 250 MW). Forest reserves

Kostroma region has the largest in the European volume of forest reserves. Total area of 4,5 ha is covered by forest. Total volume of wood reserves is more than 700 million cub. m.

Annual allowable cut – 12 million cub. m.

Free annual allowable cut > 7 million cub. m. Project description

Production volume and assortment

Economic sector: Wood processing

Основные виды Furniture shield продукции : Woodchip

Annual productive Furniture shield - 52,5 thousand cubic m. capacity: Woodchip – 105 thousand cubic m.

Sales market: Europe, Russia Financial indicators

Project’s financial indicators

Project’s value: 1,6 billion rub.

Direct investments, delivery of Forms of investment: equipment, long-term cooperation, share participation in construction

Net present value (NPV): 390,6 million rub Payback period (DPB): 5,25 years Planning period: 10 years Internal rate of return 38,75% (IRR): Financial support

Financial support for investment activity in Kostroma Region

• Reduction of profit tax rate (by 4,5 % maximum) during the payback period of project 1. implementation

• Exemption from property tax payment during the 2. payback period

• Creation of engineering infrastructure using the 3. resources of Kostroma Region Investment Fund Successful experience in projects’ implementation in timber industry

«Kronoholding AG» In the Kostroma region Swiss Concern «Kronoholding AG» implements an investment project on the production of wide range of wood boards and half-finished products made of them for furniture and construction industries. The investment volume is 12.3 billion rubles 1500 new working places were created.

«Sveza» In Manturovo city of Kostroma region the reconstruction of large plywood production was successfully finished. The annual output of plywood is about 100 thousand cub. m. The volume of investments amounts to more than 1.9 billion roubles. There were created 700 new working places. We are ready for mutually advantageous cooperation! Thank you for attention!