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1 «BM SAKHALIN» OJSC Sakhalin oblast Complex woodworking operation in the Sakhalin oblast CONSTANTINE EDUARDOVICH BEZNOSYUK General Director at “BM SAKHALIN” OJSC
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2 «BM SAKHALIN» OJSC Project cost $170 mln. Project delivery time 4 th quarter of 2017 PRIORITY INVESTMENT PROJECT IN THE AREA OF FOREST EXPLOITATION «BM SAKHALIN» OJSC “COMPLEX WOODWORKING OPERATION” IN THE SAKHALIN OBLAST THE PROJECT IS IMPLEMENTED IN LIAISON WITH THE GOVERNMENT OF THE SAKHALIN OBLAST
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3 «BM SAKHALIN» OJSC GROUP OF COMPANIES — ESTABLISHED IN 1992 PRIMARY BUSINESS ACTIVITIES — LUMBERING — SAWMILLING — EXPORT OF FOREST PRODUCTS NUMBER OF EMPLOYEES 1000 PEOPLE ANNUAL RATED WOOD CUTTING — KHABAROVSK KRAI – 1 646 TH. M 3 — SAKHALIN OBLAST – 747 TH. M 3 “BUSINESS MARKETING” GROUP OF COMPANIES
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4 «BM SAKHALIN» OJSC INDUSTRIAL SITE OF THE PLANT — BEREZOVIY SETTLEMENT, SOLNECHNIY DISTRICT OF THE KHABAROVSK KRAI THE COMPANY’S ACCESS WAYS — BORDER ON THE BAIKAL-AMUR MAINLINE RAILWAY THE PLANT’S PRODUCTION SPRUCE AND LARCH LUMBER DRIED UP TO THE 12% - 20% MOISTURE CONTENT — SPRUCE AND LARCH LUMBER, DRIED UP TO THE 12% - 20% MOISTURE CONTENT EXPORTED TO THE EUROPEAN UNION COUNTRIES, JAPAN, SOUTH KOREA, CHINA AND DOMESTIC MARKET — EXPORTED TO THE EUROPEAN UNION COUNTRIES, JAPAN, SOUTH KOREA, CHINA AND DOMESTIC MARKET THE VOLUME OF PROCESSED RAW MATERIALS — 300 000 M 3 /YEAR VOLUME OF END PRODUCT — LUMBER (DRIED) – 150 000 M 3 /YEAR — INDUSTRIAL WOODCHIPS- 90 000 dense M 3 /YEAR NUMBER OF EMPLOYEES — APPROXIMATELY 200 PEOPLE “AMUR FOREST” WOOD WORKING PLANT
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5 «BM SAKHALIN» OJSC The Project aims to revive Sakhalin timber industry
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Project allocated timber supply area TOTAL AREA OF TIMBER SITES — 1007,9 th. ha. ANNUAL CALCULATED FELLING RATE — 747 th. m 3 OKHINSKOYE FOREST DISTRICT RESOURCE: 250 TH.M3 SPECIES: SPRUCE, LARCH NOGLIKSKOYE FOREST DISTRICT RESOURCE: 350 TH.M3 SPECIES: SPRUCE, LARCH ALEXANDROVSKOYE FOREST DISTRICT RESOURCE: 150 TH.M3 SPECIES: SPRUCE, LARCH TIMOVSKOYE FOREST DISTRICT RESOURCE: 150 TH.M3 SPECIES: SPRUCE, LARCH SMIRNIKHOVSKOYE FOREST DISTRICT RESOURCE: 350 TH.M3 SPECIES: SPRUCE, LARCH «BM SAKHALIN» OJSC 6
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7 ESTABLISHMENT OF THE WOODWORKING OPERATION (SAKHALIN OBLAST) Construction of the modern woodworking complex IN ALEXANDROVSK-SAKHALINSKIY (SEAPORT) WITH THE ANNUAL CAPCITY — 100 th.m 3 DRIED PLANNED LUMBER — 25 th.m 3 LAMINATED BEAM — 100 th. ПЛОТНЫХ М 3 INDUSTRIAL WOOD CHIPS — 62 th. TONS OF WOOD PELLETS — MINI THERMAL POWER STATION USING SOLID FUEL (SCRAP WOOD. PRODUCTION OF ELECTRIC POWER 42,2 mln. kwt/hour, THERMAL POWER 60 th. GKAL/HOUR. HARVESTING AND LOGGING OF RAW WOOD — IN THE AMMONT OF 747 th.m3 PER YEAR Location of the site permits logging by automobiles to the processing and forwarding site
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8 «BM SAKHALIN» OJSC THE PROGRESS OF THE INVESTMENT PROJECT IMPLEMENTATION ― DEVELOPED A BUSINESS PLAN FOR THE INVESTMENT PROJECT; ― DESIGN AND EXPLORATION ACTIVITIES ARE BEING PERFORMED AND DESIGN SPECIFICATIONS AND ESTIMATES FOR THE CONSTRUCTION OF THE ACCESS ROADS ARE BEING DEVELOPED; ― OBTAINED CONFORMANCE FROM THE SAKHALIN OBLAST TIMBER INDUSTRY COUNCIL; ― OBTAINED CONFORMANCE FROM THE SAKHALIN OBLAST ENVIRONMENTAL COUNCIL; ― ENTERED INTO AN AGREEMENT WITH THE GOVERNMENT OF THE SAKHALIN OBLAST AND THE BUSINESS-MARKETING LIMITED LIABILITY COMPANY FOR IMPLEMENTATION OF THE PROVISIONS OF THE “STRATEGY FOR THE DEVELOPMENT OF THE TIMBER INDUSTRY COMPLEX OF THE SAKHALIN OBLAST UP TO 2020”. ― THE PROJECT IS LISTED AMONG THE PRIORITY INVESTMENT PROJECTS IN THE AREA OF FOREST EXPLOITATION (DIRECTIVE # 748 AS OF JUNE 07 2012 OF THE MINISTRY OF INDUSTRY AND TRADE OF THE RUSSIAN FEDERATION). ― DEVELOPED FOREST EXPLOITATION PLAN. ― OBTAINED FOREST USE REPORTS. ― STARTED PRODUCTION OF ROUNDWOOD.
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9 «BM SAKHALIN» OJSC RANKS AS A PRIORITY INVESTMENT PROJECT IN THE RF IN THE AREA OF FOREST EXPLOITATION THE GOVERNMENT OF THE SAKHALIN OBLAST GRANTS “BM SAKHALIN” OJSC THE MEASURES OF STATE SUPPORT THE MEASURES OF PROJECT STATE SUPPORT: — BUDGET INVESTMENTS IN THE AMOUNT OF 200 MLN. RUB. — 50% PROPERTY TAX RELIEF — 50% PROFIT TAX RELIEF THROUGHOUT THE PROJECT PAYBACK PERIOD — DECREASE OF RENTAL CHARGES FOR FOREST RESOURCES BY TWO TIMES — 50% DISCOUNT FOR LOGISTICS SERVICES WITHIN THE SKHALIN OBLAST FROM THE REGIONAL GOVERNMENT. ESTABLISHMENT OF THE WOODWORKING OPERATION (SAKHALIN OBLAST)
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10 «BM SAKHALIN» OJSC PROJECT PAYBACK PERIOD:7 YEARS SOCIAL AND ECONOMIC EFFECT FROM THE PROJECT IMPLEMENTATION ―Growth of the regional gross product ―Increase of tax payments, ―Provides positive impact on the allied industries (transportation, construction, services, professional technical education). ―Creation of over 700 new job positions. Total amount of the investment costs $170 000 000, Including: $149 000 000 – For the establishment of the complex wood working operation $ 21 000 000 – For the reconstruction of the sea port in Alexandrovsk-Sakhalinskiy.
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11 «BM SAKHALIN» OJSC THANK YOU FOR YOUR ATTENTION! БЕЗНОСЮК КОНСТАНТИН ЭДУАРДОВИЧ ГЕНЕРАЛЬНЫЙ ДИРЕКТОР ОАО « БМ САХАЛИН » CONSTANTINE BEZNOSYUK GENERAL DIRECTOR AT ‘BM SAKHALIN’ Head office: 680030, Russia, Khabarovsk Krai, Khabarovsk, Cloud lane 78a, Suite 6. Tel. / Fax: +7 (4212) 23-28-66, 23-34-39, 23-33-24 E-mail: bm@groupbm.ru
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