Apr 15, 2004. /Lesprom Network/. IFC is considering the financing of the expansion of Kronospan MDF enterprise located in Egoryevsk, IFC spokesperson reported. The project envisages the financing of MDF production line construction with the capacity of 140 thousand cub m/yr, the financing of the 2nd MDF line construction with the capacity of 175 thousand cub m, the financing of formaldehyde production line construction with the capacity of 80 thousand tons/yr. ‘The profits of the project are guaranteed by the strong wooden panels demand growth, especially MDF panels, in Russia’ IFC spokesperson stressed. Further details as well as the cost of the project haven’t been disclosed yet. As Lesprom.ru reported earlier, Kronospan finished the test of the 1st MDF production line in early April 2004. According to Kronospan Russia CEO Ardasher Kurbansho, total investments in the construction of the enterprise producing wooden panels and laminated floor coverings will reach EUR 500 million. Earlier IFC granted EUR 80 million to Kronostar (Sharia, Kostroma region, 100% affiliated company of Swiss Krono Holding AG, Europe’s largest wooden panels manufacturer) for new particleboard production lines installation with the capacity of 165 thousand cub m/yr and MDF production lines with the capacity of 400 thousand cub m/yr. After all the production lines are launched the enterprise will employ 1,000 workers. This week IFC announced its decision to grant a credit of $40 million to Russian Sveza, national largest veneer manufacturer owned by Sevestal-group. According to IFC official statement, the credit will be directed to the plywood enterprises production modernization and timber production volumes expansion. Sveza intends to spend a total of $80 million on these projects.