Kronostar (the company or the project) is 100% owned by Krono Holding AG since early 2002. The AOO Sharjadrew combine dates back to early 1900’s with a construction of a saw mill in the Sharja, Kostroma region. Over the years, it has established a particleboard factory, and was privatized in 1992. AOO Sharjadrew filed for insolvency in 1997. In 2002, Krono Holding AG purchased AOO Sharjadrew’s assets. The purpose of the investment is to install a new particleboard line at Kronostar. The project has strong business fundamentals. It will contribute to the modernization of Russian wood panel industry, which is currently characterized by old and inefficient operations, and it will have a potentially strong impact on the revival and development of the following components: - rural area of the Kostroma Oblast; - wood panel industry, and - furniture industry in the Russian Federation. The project is supported by the strong expected demand growth for wood panels. Using modern technology, Kronostar will produce particleboard and will add employment for over 100 direct jobs to the existing operations bringing the total direct employment to over 1000.