Finnforest to start up, market output from new LVL-Ugra plant in Russia

May 05, 2004. /Lesprom Network/.Finnforest Corp. has signed a strategic agreement to cooperate with Russian producer of laminated veneer lumber (LVL) products LVL-Ugra. Within the co-operation Finnforest will be responsible for starting up LVL-Ugra's production operations, quality control and creating a quality system. Finnforest will have exclusive rights to sales and marketing of the products outside Russia and the CIS countries. The agreement guarantees Finnforest the necessary additional capacity to meet the growing demand for Kerto products among their customers. Cooperation with LVL-Ugra supports Finnforest's strategy to be the European market leader for wood products solutions, and promotes the company's expansion into Russia . At present Finnforest has a planing mill in St. Petersburg . The LVL-Ugra company located in Khanty-Mansiysk Autonomous Region, Western Siberia , is owned by a holding company founded by the region's administration. The company focuses on developing the wood products industry in the region. The first batch of Kerto products is to be launched on the market this summer. The mill's annual production capacity is about 40,000 cubic metres. Finnforest is the only European company to manufacture LVL, with factories in Lohja and Punkaharju, in southern Finland . The Lohja plant has a capacity of 100,000 cubic metres and Punkaharju produces 60,000 cubic metres annually. Kerto (LVL) is made by gluing together 3.2 mm-thick layers of softwood veneer. Kerto is used in bearing structures, for example, intermediate floor and roof structures and in I-joists.