Large wood-working plant opens at SEZ “Alabuga”

On September 24, Tatarstan President Rustam Minnikhanov, Turkish Minister of Forestry and Water Veysel Eroğlu, President of Hayat holding Ahmet Yahya Kigili, Tatarstan Prime Minister Ildar Khalikov, Russian Deputy Minister of Industry and Trade Georgy Kalamanov took part in solemn opening of Kastamonu Entegre plant, a subsidiary of Hayat Holding, manufacturing MDF panels at SEZ “Alabuga”.

With 300 million dollars of funding of the first project stage, the plant will produce 475, 000 cubic metres of MDF panels and 20 million square metres of flooring per year. The second stage implies production of 725, 000 cubic metres of MDF panels, and the third stage (2017-2018) – 500, 000 cubic metres of MDF panels a year. Total project costs will make 600 million dollars.

Low-grade Tatarstan wood will be mainly used at the plant. About 80 per cent of produce will be sold in Russia, 20 per cent will be exported to Asia and Eastern Europe. Rustam Minnikhanov said that the event is very important for Russia and Tatarstan. He also reminded that the decision about implementation of large-scale Turkish projects in Tatarstan was made during the visit of Turkish Prime Minister Recep Tayyip Erdoğan and President Abdullah Gül to Tatarstan four years ago. Kastamonu Entegre was the first big project.

Rustam Minnikhanov noted that opening of the plant will favour development of small and medium businesses and furniture production in Tatarstan.

Rustam Minnikhanov thanked Turkish Minister of Forestry and Water Veysel Eroğlu for participation in the opening ceremony and promised that Tatarstan leadership will render overall assistance to further development of the enterprise.

Georgy Kalamanov said that opening of Kastamonu Entegre plant is a considerable contribution to realization of the strategy of Russian forestry development.

President of Hayat holding Ahmet Yahya Kigili, in his turn, said that the plant’s annual production output will make 170 million dollars, and 2,500 jobs will be provided. He also confirmed intentions of Hayat holding to continue implementing investment projects in Tatarstan and addressed Tatarstan President with request to help with passing bureaucratic procedures, supplying raw materials, staff training and providing accommodation for employees.