Governor of Leningrad Region Valery Serdyukov launched primarily woodworking complex in the village Chudtsy (Boksitogorsk district).The volume of investment in this joint project of the Austrian Mayr-Melnhof Holz Gmbh and LSR Group amounted to 80 million euros.

The first phase of the plant is a sawmill area of 24 hectares. It tool less than three years to construct. Today this is one of the most modern plants in the area, which will work by new technologies that will improve the useful yields and reduce waste.

The second part of the plant is the factory for the production of glued laminated beams, the construction of which is planned to begin in 2010. Thus, the total area of the plant with access roads and railway line will be 42 hectares.

The company will become one of the largest not only in North-West region, but also in Russia. The annual power output of the plant after the totals will exceed 650 thousand cubic meters of roundwood input, output of finished products – 350 thousand cubic meters of lumber per year. The main raw material – spruce – will be supplied by 80% from Boksitogorsk and Tikhvin districts of Leningrad Region, and about 20% – from the other area. Some materials will provide the subsidiary MM-Efimovsky company, which has the lease in the forest fund with permissible annual volume of 450 thousand cubic meters of forest management (include 120 thousand cubic meters of timber).

The technology involves the production of waste-processing method. 100% of the crust and, if necessary, shaving will be the fuel for the installation of thermal energy, which will be used for drying chambers, and in winter – for heating of industrial premises.

According to experts, the plant production is in demand today in such a strategically important sector as an individual and low-rise construction. Such products as decking, beams, wood are widely used in monolithic construction.

Along with the North-West region, it is scheduled to deliver the products to other regions of Russia, CIS and far abroad countries: Japan, Western Europe, and the United States.

Currently the company employs 150 people. In general, staffing is maintained by local residents from Pikalevo, including staff from the recently downsized Pikalevsky Alumina Refinery. After the release of the production at full design capacity the number of employees will increase to 250–300 people. The plant will operate around the clock 7 days a week in three shifts.

Additional tax revenues to the budget of Leningrad region will be about 120 million rubles per year, subject to full capacity utilization.