Kronospan launches first OSB mill in Russia

30 October 2014

Kronospan has launched its first Russian OSB mill in Eogorievsk, Moscow region (after Hillman, Novovyatsky LK and DOK Kalevala).

The mill will have an annual capacity of 350,000m3, according to a WhatWood report. Kronospan intends to expand production capacity at this mill up to 700,000m3, and currently solves the issue with the site for the construction of the second line.

The Austrian company has also started test production at the end of August in Mogilev, Belarus, where production is estimated at 300,000m of OSB. Its products will be sold on the markets of Western Europe and Russia. The company has recently published an advertisement about the search of exclusive regional distributors in Russia, says WhatWood.

Russian OSB imports in the first half of 2014 have decreased slightly by -3.3% to 283,600m3. As WhatWood points out: 'Prices for [imported] Romanian and Latvian OSB [in Russia] panels began to decline in the autumn of 2013 and stabilized only in May 2014, which is likely due to increased competition.

According to market players, the suppliers "are fighting literally for 5 roubles per sheet", which is less than 1.5% of the value.