Russian wood manufacturer Kronospan has won a €120mn syndicated loan from development and local banks to build a wood producing plant in Egorievsk, near Moscow.

The loan is comprised of a €70mn seven-year A loan, funded by The European Bank for Reconstruction and Development (EBRD), a five-year €40mn B Loan, provided by Raiffeisenlandesbank, and a seven-year €10mn B loan from Canada’s investment company Cordiant Capital.

Kronospan is a wholly-owned Russian subsidiary of Kronospan Holdings East Limited − a member of the Austria-based Kronospan group of companies. The plant will produce oriented strand board (OSB), a strong wood-based panel used in the construction industry which currently can only be imported.

Russia accounts for 22% of the world’s total forests, although its forestry industry produces no more than 6% of global timber output, the EBRD says.