Eastern European Markets
January 16, 2007

L&T to build production plant for recycled materials in the Moscow vicinity

Lassila & Tikanoja is building a production plant for recycled materials in Dubna, 120 kilometres north of Moscow. The construction work will start in spring 2007 and the plant will be completed in early 2008. The investment amounts to some 2 million Euro. The plant’s capacity will be 30,000 tons per year.

L&T’s target for this recycled materials production plant is to significantly reduce the amount of waste to be placed on landfills in the Dubna economic region, and to considerably increase waste material utilisation levels.

– Our production plant for recycled materials will represent state-of-the-art technology, where quality, cost efficiency, environmental aspects and occupational safety are being observed in the best possible way. It will transfer waste materials handling into a mechanical, industrial process, says Pertti Tammivuori, Director, Environmental Services, Baltic countries and Russia at L&T.

The production plant will be receiving waste materials generated by the business community as well as separately collected usable waste fractions such as paper, carton, plastics and metal. The different waste fractions will be sorted and baled, and subsequently delivered as industrial raw materials.

L&T has been working in the city of Dubna in the Moscow administrative district since 2005. Activities so far focusing on waste collection and transportation will extend to include neighbouring districts this year. This waste materials recycling investment will be an opening for L&T to enter the recycling business in Russia.

L&T’s target is to grow significantly in the Baltic Sea region countries and extensively within Russia by way of organic growth and company acquisitions. L&T’s recycling technology investments will also continue.

– In the years to come, Russia will need several extensive investments. The operation model to be created to implement the Dubna plant investment, where collection, transportation and handling are one entity, shall be extended to cover other parts of the Moscow administrative district as well, says Pertti Tammivuori.

Strong economic growth and increasing consumption will also rapidly increase the waste problem in Russia. Major cities such as Moscow and St. Petersburg will experience the most significant growth. Waste factors influencing increase of waste volumes include abundant use of disposable packages in consumption merchandise production.

Further information:
Pertti Tammivuori, Director, Lassila & Tikanoja plc
tel. +358 10 636 2768 or +358 500 705 772.

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