Sep 21, 2004. /Lesprom Network/. On September, 24 Leningrad region and Svir-Timber will sign an agreement on the fulfillment of investment activity. The agreement will give a start to the construction of a timber-processing enterprise initiated by Finnish Metsa-Botnia. Leningrad economic development committee spokesperson Alexander Butenin announced. The location of the future enterprise was agreed during the meeting held by the interdepartmental commission in March 2004. The main strategic task Metsa-Botnia has undertaken is the creation of new complex timber-procession production capacities. The project will be fulfilled in 3 stages: 1.The construction of a sawmill 2.The construction of a pulp enterprise 3.The construction of the enterprses producing MDF, veneer and other types of timber-procession products The power of the future sawmill is 440 thousand cub m/yr Production volumes: sawn timber for export – 200 thousand cub m/yr wood chips – 150 thousand cub m/yr. The expertise of the business-plan was carried out by PIK cousnlting firm accredited at the Leningrad regional government. Overall investments are EUR 54 million, including: buildings construction – EUR 19.6 million, equipment and launch works – EUR 30.4 million, working capital – EUR 5 million. Working capital does not fall under the law N 57 on the State support of investment activity. Therefore the investments are estimated at EUR 49 million. The correction of the business plan was carried out in line with the requirements of the regional investment legislation, and the term of recoupment decreased by 2 quarters to 25 quarters (not including tax discount period – 32 quarters). The decision to build the enterprise in Podporozhsky region was another positive result of the work done by the regional administration in order to attract additional investments in the construction of enterprises in the North-East district of the region. The North-East district is the remotest part of the region, while timber procession proves to be more profitable when processed in the place of origin. 2 enterprises are successfully operating in the North-East district – Svedwood in Tihvin and a timber-processing enterprise owned by a major Russian company in Pasha. Metsa-Botnia enterprise will be the largest one in the North-East district and after the enterprise is launched, the whole amount of timber from Podporozhsky and Lodeynopolsky districts will be processd on the spot. LLC Progress will be one of the main suppliers of raw timber to the enterprise.