The Russian subsidiary of Ruukki Group Plc, OOO Ruukki Invest Oy Kostroma, has
pending priority investor status applications in process. The handling of these
applications continues within the Kostroma region's administration, and it is
expected that the decisions shall be made within one month.
Concerning the investments, the group has, as announced during summer 2007,
investment agreements in force with the Kostroma region for a sawmill and for a
pulp mill investments.
In the investment agreements, Ruukki Group has committed to construct a sawmill
and a pulp mill in the Kostroma region. The Kostroma region has on its part
committed to give Ruukki Group altogether 6.0 million cubic meters of forest
cutting rights by 49-year lease agreements.
In November 2007 the company made two applications to the Kostroma region for
priority investor status as stipulated by the new forest legislation in the
Russian Federation and as instructed by the federal decrees confirmed in summer
2007. It was predicted that the handling of the applications will last
approximately two months.
The handling of the applications is actively done with the Kostroma region's
administration. It is expected that the decisions related to these priority
investor status applications will be finalised within the next month.
Ruukki Group and its Russian subsidiary have signed delivery agreements for
sawmill and harvesting machinery so that the sawmill can be operational from
investor's point of view by the end of this year. The bidding process for the
main contractor for the sawmill site ground works and construction works is in
finalisation phase.
For additional information, please contact:
Matti Vikkula
CEO
Ruukki Group Plc
Tel. +358 45 6700 606
www.ruukkigroup.fi