Kronospan Holding Ltd has started to build a wood processing plant in the town of Smorgon, Grodno Oblast, according to the Belarusian Telegraph Agency.

The US$150m investment project, which will take three years, will result in a factory which can process 1.5 million m³ of wood, as well as produce laminate flooring.

The company has started to construct administrative facilities in the northern industrial zone of the district capital. The investor bought idle facilities and territories which belonged to Smorgon Aggregate Plant. Over US$4m has already been pumped into the construction project.

The first equipment will be delivered in November. Production will be launched in the first half of 2012.

The export-oriented plant will employ about 300 people.