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January 1999 

SOFTWOOD LUMBER PRODUCTION

INITIATOR OF THE PROJECT: 

• JSC "Bajalsky LPH-2", Address: Suluk., Khabarovsky Krai, Russia. Director Anatoly N. Goroshkov
• Shareholders: Khabarovsk Krai Government - 15%, "DalReo" - 17.8 %, and Individuals.
• Payroll - 92 employees
• Property: Joint property. Logging facilities and technologies.
• Products: Logs and lumber products.
• Markets: Export to Korea, Japan, China

  PROJECT INFORMATION: 

• Target: Producton of quality lumber products (Spruce and larch)
• Commodities: Timberland - 6,658,000 cubic meters.
• Products: Logs - 68,000 cubic meters per year and lumber - 20,000,000 cubic meters per year.
• Markets: Russian Far Eastern industries and export to China, Korea, Japan.
• Project's Readiness: Business Plan, Feasibility Study and necessary documentation are available. The project is supported by KhabarovskKrai government.

FINANCIAL DATA OF THE PROJECT: 

• Required Investment: - US$ 6.0 million
• Forms of Cooperation: 10 years loan at 12%.
• Guarantee: Negotiated, mortgage is possible.
• Return Period: 4 years.
• Profitablility: 20 %
• Investment return: Money

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