The Russian Direct Investment Fund (RDIF), Russia’s sovereign wealth fund and Mubadala Investment Company, UAE’s sovereign wealth fund, 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 project located in the Vologda region, Russia, will have an expected total investment of about $2.8 billion. The expected capacity of the plant is over 1.3 million 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. Sveza Group is a world leader in the birch plywood market.