On 2 June, on the sidelines of the 21st St. Petersburg International Economic Forum, a cooperation agreement was signed between the Government of Leningrad Region and joint stock company Knauf Petrobord, a member of the Knauf Group. The agreement includes an investment by Knauf of at least RUB 3.5 billion to renovate production facilities for cardboard facing over the period to 2020, and provision of investor support by the Government of Leningrad Region.
The funds invested under the agreement will be used to upgrade facilities for producing cardboard facing from waste paper, including the refitting of cardboard machine No. 2 and an overhaul of treatment facilities. These improvements will enable an increase in cardboard production and quality, improve energy efficiency, and reduce the impact on the surrounding environment.
Associates from Egorov Puginsky Afanasiev & Partners provided legal support to Knauf in formulating the terms of the agreement and during negotiations.