Austrian and Turkish companies aspiring to build Kaluga plant

On the 7th of September, a press conference was held. The conference was attended by Anatoly Artamonov, the Governor of the Kaluga Region, where he told that two companies, namely Kastamonu Entegre (Turkey), a member of Hayat Holding, and Kronospan (Austria) were competing for the right to construct a timber processing plant in Kaluga Special Economic Zone.

Austrian and Turkish companies aspiring to build Kaluga plant

On the 7^th of September, a press conference was held. The conference was attended by Anatoly Artamonov, the Governor of the Kaluga Region, where he told that two companies, namely Kastamonu Entegre (Turkey), a member of Hayat Holding, and Kronospan (Austria) were competing for the right to construct a timber processing plant in Kaluga Special Economic Zone.

It is commonly known that it was Kastamonu Entegre that laid foundation for a MDF plant in Kaluga in May 2015. But after relations with Turkey deteriorated, the construction of the plant was suspended. And in June this year, the Regional Government executed the plant-related construction agreement with Kronospan (Austria).

Today, when relations with Turkey have been restored, the Turkey company once again expressed its wish to construct in Kaluga. And according to Anatoly Artamonov, the region now may choose between the two companies. It is necessary to understand which company will fit better for the task and construct quicker and better and make the right choice.

The Governor opined that the construction of two timber processing facilities simultaneously was also possible. None of the companies would then be aggrieved. But it is necessary to ensure that the facilities are located at an optimal distance of 200 km from each other. The Governor is sure that the Region's size makes it possible.

Austrian Kronospan plans to invest some $140 million into the facility expecting to manufacture 350 thousand cubic meters of MDF boards per annum. It plans to proceed to the construction at the end of this year. Turkish Kastamonu Entegre has even more serious plans with $200 million of planned investments and 900 thousand cubic meters of MDF boards per annum.