Investments in Komi Republic

CentroWoodKom Ltd, Centrozap’s subsidiary in 70%, under a regulation of the Ministry of Industry and Energetics of Komi Republic, Russian Federation, has been qualified to the Priority Investments Program in the Scope of Russian Federation Forests Development.

Qualification of CentroWoodKom Ltd to the Priority Investments Program in the Scope of Russian Federation Forests Development and obtaining the Priority Investment status, ensures the possibility of cutting and forest areas development for 49 years period, in quantities of 1.840.000 m3 of wood annually, and the possibility of harvesting of 750.000 m3 of saw mill timber for processing per year, for CentroWoodKom Ltd and indirectly for Centrozap SA. The area of forest plots for cutting amounts 12.300 ha per year. The area of forest plots in tenancy for 49 years period amounts 600.000 ha.

Qualification of CentroWoodKom Ltd to the Priority Investments Program forms grounds for the start of investment program realisation, which assumes construction of modern wood processing plants on the Komi Republic territory in years 2008 – 2011.

Planned value of the investment amounts 275 mln PLN (77 mln EUR). The Investment project financing source will be external funds.
The “Priority Investment” status , in the framework of the “Priority Investments Program in the Scope of the Russian Federation Forests Development”, obtained for the project by Centrozap SA Group, defines a new direction of the Company long term development in the raw material branch.