Swedish IKEA to Build Timber-Processing Facilities in Karelia in April 2004

Nov 4, 2003. /Lesprom Network/. Swedish IKEA intends to start timber-processing production in Russian Karelia republic in April 2004 worth 15 million euro. Swedwood company (100% owned by IKEA, Sweden) president Peter Berntson told journalists Tuesday. Timber-felling production will be launched in 2004, saw-timber production - in 2005. The mills will be situated in Kalevale. Timber will be leased fom Kalevale and Kostomushsk areas. The construction works will start only in case IKEA and the regional government reach an agreement on the conditions forestries lease. The expected annual turnover is 20 million euro, Peter Berntson said. The mill will produce glued boards for furniture assembly at the first stage, Peter Berntson added. The new production may lead to the construction of a full-scale furniture mill in Karelia in the future.