2012

1. Investment project of OSB production in Buj of Kostroma region 2012

2. Project description • Project targetisconstruction of OSB production plant in Buj (Kostroma region) with annual capacity of 400 thousand cub. m using modern technologies and equipment. • Planning periodis 8 years. • Start of production is scheduled for the 1st quarter of the third year, reaching forthe production capacities – for the 6th year of project realization. • Investment project production planinvolves production of board with thickness from 6 to 40 mm of basic format of 1 250*2 500 mm. • Annual volume of raw materials consumption is 440 thousandm3for the capacity of 200 thousandm3 and 880 thousandm3for the capacity of 400 thousandm3. Raw materials are partially prepared at the own timber production, partially – are purchased from indirect logging enterprises. • Project value - 5 470 000 thousand RUR (excluding VAT) • Financial sources: • - 20 % of own funds; • - 80 % of borrowed funds.

3. Location • favourable investment climate; • advantageous geographical location; • availability of transit transport network; • low level of social conflicts.

4. Project efficiency indicators Brief information about the project Production capacity – 400 m3of boards per year Total number of workers- 366 Average salary – от 26,7 тыс. рублей Payback period – 6 years Kostroma region administration is ready to provide the most favoured nation treatment for the investment projectin part of exemption from payment of the following taxes payable to the regional budget during the payback period: - exemption from payment of property tax; - reduction of the rate of profit tax from 18% to 13,5%.

5. Project efficiency indicators Project economic efficiency during planning period

6. Project efficiency indicators Project budgetary efficiency