Dec. 12, 2006 - Metsa Botnia is reported to be considering the construction of a greenfield pulp mill in the Vologda region of Russia, according to Paper and Life magazine.

Leonid Iogman, chief of the economic department of Russia's Vologda region, said the $1 million facility will be located at the west part of the region. He did not discuss any other details.

Paper and Life said that Anniki Rintala, vice-president of Metsa Botnia, confirmed that the company is looking for a suitable construction site in Russia. She emphasized that challenges involving raw materials, logistics, and a better understanding of local Russian laws are being studied.

A final decision on the pulp mill project would probably be made in the next couple of years, Rintala said.

Metsa Botnia already has a presence in Russia and operates a saw mill on the river Svir near the town of Podporodzhye, approximately 300 kilometres east of St. Petersburg. The EUR 55 million saw mill was a greenfield project and officially began production in April 2006. The mill has an annual capacity of 200,000 cubic metres of dried sawn spruce.

SOURCE: Paper and Life