The project of the company EGGER DREVPRODUKT GAGARIN has been received a new status

The meeting of the Commission on investment policy with Administration of Smolensk region has taken place under the chairmanship of the Governor of Smolensk region Alexey Ostrovsky. It has been considered the question of inclusion the project Sofia of the company EGGER DREVPRODUKT GAGARIN on construction of the largest plant in Europe, on production of wood particleboards and floor coverings in the list of priority investment projects.

It is the first project in the Smolensk region applying for so high status.

During the meeting the Governor Alexey Ostrovsky has emphasized: “The company EGGER will be provided the state support in a form of tax benefits for the period till December 31, 2024 in case of inclusion the project Sofia in the list of priority projects. Over 4,7 billion rubles from activity of the company EGGER, including more than 2 billion rubles of tax payments from implementation of the project Sofia will come to the consolidated budget of the region in 10 years”.

The Austrian company EGGER is among the largest European enterprises of woodworking branch. Commodity turnover of the company makes 2,3 billion euros. Today EGGER contains 17 subsidiaries, the largest of which is in Gagarinsky district. 500 million euros has been invested in production in Smolensk region since 2011. Today more than 700 people work at the plant, annual commodity turnover exceeds 8 billion rubles.

The company EGGER is included in the List of the organizations having significant effect on industries and trade by the Ministry of Industry and Trade of the Russian Federation.

 In 2014 the company EGGER with assistance of Administration of Smolensk region has started implementation of the project Sofia on production of MDF, HDF and floor coverings.

 “For implementation of the project we have provided all infrastructure from greenfield. In particular, it has been constructed a substation of high voltage for ensuring capacities of the plant. Start of the enterprise in operation required only 2 years, it is very short term for such large-scale project. At the moment the plant is in operation at full capacity, 230 new hi-tech jobs are created. All this work has become possible in many respects thanks to support of the Governor Alexey Ostrovsky” - the CEO of LLC EGGER DREVPRODUKT GAGARIN Peter Weismayr has declared. 

The director has informed that the total amount of investments into the project Sofia has made 16,5 billion rubles excluding VAT, 59% of these means is a credit component, 41% is money of the company. Within the project the line of production of MDF and HDF, the line of production of floor coverings, grindings, laminations, packings, impregnations and also the mini-combined heat and power plant using biological fuel are acquired and mounted. Besides, the latest nature protection equipment, treatment facilities (filters and cyclones) conforming to the advanced Russian and international standards are used at the enterprise.

As a result of vote the decision on inclusion of the project Sofia in the list of priority investment projects of the Smolensk region has been made unanimously. 

It should be reminded that in 2015 the new category - priority investment projects was published in the regional legislation for creating favorable conditions for implementation of investment activity in the territory of the region, involvement of large investors. This status is given to the large projects on creation of new production capacities providing capital investments at a minimum of 300 million rubles.