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RDIF, Mubadala and Sveza agree key terms for construction of pulp mill
17 October 2019
Abu Dhabi, October 15, 2019 - The Russian Direct Investment Fund (RDIF), Russia’s sovereign wealth fund and Mubadala Investment Company, UAE’s sovereign wealth fund, announce that they reached an agreement on the key terms for the joint investment in a pulp mill construction project with Sveza, one of Russia’s market-leading woodworking companies (asset of Severgroup investment company). The agreement was signed today on the sidelines of Russian President Vladimir Putin’s visit to UAE.

The project located in the Vologda Region will have an expected total investment of about $2.8 bn. The expected capacity of the plant is over 1.3mn tons of market pulp per annum, focusing on Russian and key European and Asian markets.


The plant will be Russia’s most modern pulp mill, based upon best-in-class practices, using equipment with minimal environmental impact. The commissioning of the mill will enable Sveza to diversify their product portfolio and strengthen its position in the woodworking market.


Kirill Dmitriev, CEO of the Russian Direct Investment Fund (RDIF), said:

“RDIF and our leading Middle Eastern partners are pleased to support Sveza’s promising project. It will contribute to reaching the goals set out in Russia’s national project “International Cooperation and Export”. This environmentally friendly, high-performance and modern enterprise will become one of the leaders in Russia’s woodworking market, as well as creating additional jobs in the Vologda Region. The region’s developed transport infrastructure will enable quick deliveries and help fully realize the product's high export potential.”


Alexey Mordashov, CEO of Severgroup, commented:

“Construction of the best-in-class biotechnological complex is an ambitious and important project for Sveza and for Russia. This will be the most advanced pulp production facility in Russia, and will ensure our timber industry continues to be globally competitive. The distinctive advantages of the project will include its high export potential, using "green" energy and most modern technological solutions. I should also emphasize that Sveza and Severgroup always work in strict compliance with all Russian and international environmental rules and requirements. The facility’s ecological safety system will utilize cutting-edge technology and meet the highest international standards. We would also like to recognize the support of our co-investors and thank them for their confidence in this important project.”


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Russian Direct Investment Fund (RDIF) is Russia's sovereign wealth fund established in 2011 to make equity co-investments, primarily in Russia, alongside reputable international financial and strategic investors. RDIF acts as a catalyst for direct investment in the Russian economy. RDIF’s management company is based in Moscow. Currently, RDIF has experience of the successful joint implementation of more than 70 projects with foreign partners totaling more than RUB1.5 tn and covering 95% of the regions of the Russian Federation. RDIF portfolio companies employ more than 800,000 people and generate revenues which equate to more than 6% of Russia’s GDP. RDIF established joint strategic partnerships with leading international co-investors from more than 15 countries that total more than $40 bn. Further information can be found at www.rdif.ru


SVEZA Group is a world leader in the birch plywood market. The company has been operating in Russia since 1998 and its products are now supplied to 70 countries across five continents. SVEZA’s products are used in the construction of skyscrapers and Olympic facilities, the manufacturing of line haul trailers and high-speed trains, as well as the creation of eco-furniture and stylish interiors. SVEZA is Russia’s leading supplier for monolithic construction. SVEZA's capacity is approximately 1.23 million cubic meters of birch plywood and 265,3 thousand cubic meters of chipboard annually.

 

"Severgroup" LLC is a private investment company founded in 1993, which makes long-term investments and manages the assets in behalf of Alexey Mordashov. Investments of the company include assets in the following industries: metals&mining, woodworking, power engineering, FMCG, telecommunications, HR tech, medicine etc.