According to Ministry of Industry and Energy, in 2007 production growth in woodworking and wood products manufacture in Russia made up 106.2%, whereas in pulp-and-paper production – 103.7% as compared to 2006.

In wood harvesting production growth reached 115.2%, including wood hauling – 115.2% (123 mln cubic meters), industrial timber production – 107.7% (101 mln cubic meters).

Timber products manufacture in Russian timber industry 2005-2007

2007 watched growth practically of all types of products in timber industry, as new production facilities integrated in 2006-2007 reached production capacity.

Major facilities in timber industry with both Russian and foreign assets include:

-         In 2006 Egger (Austria) launched LLC Egger-Drevproduct - a plant for chipboard production in Shuya (Ivanovo region) with production capacity reaching 160 thousand cubic meters per year.

-         Metsa Botnia (Finland) put into operation a sawmill in Podporozhsk district (Leningrad region) – annual production capacity making up 99.2 thousand cubic meters of sawn timber.

-         Krono Holding AG (Switzerland) launched chipboard production in Sharya (Kostroma region) with production capacity reaching 150 thousand cubic meters per year, of them 75 thousand cubic meters – laminboards.

-         In 2006 Stora Enso completed construction works for the second line for cellular board production (75 mln sq. meters per year) in Arzamas (Nizhny Novgorod region). Total production volume amounts to 150 mln sq. meters.

-         In 2006 North-West Timber Company (SZLK) launched Neman paper mill N3 (Kaliningrad region) with annual production capacity – 60 thousand ton of paper.

-         In 2007 Kronospan (Austria) put into operation LLC Kronospan – a plant for chipboard production in Egoryevsk (Moscow region) with production volume reaching 750 thousand cubic meters per year.

-         Fleiderer (Germany) launched facilities for chipboard production in Veliky Novgorod (annual production capacity – 880 thousand cubic meters per year).

-         Investment company STOD (St. Petersburg) completed the first stage of construction project in Torzhok. The company is to construct a plant for glued log production for timber house construction. Total production capacity will make 120 thousand cubic meters per year. Production wastes are to be used for pellet production (60 ton per annually).

Growth in pulp-and-paper production is due to increase of carrier board production. Within two last years reconstruction works were performed at the leading pulp-and-paper mills to increase carrier board production.

Financial and economic situation of timber industry in 2006-2007 has gradually improved with wood harvesting companies’ profitability making up 8.1%.

Profit at woodworking companies (large and middle business) made up 7.5 bln rubles, i.e. as much as 3.5 times as compared to January-September 2006.

In pulp-and-paper industry profit reached 13.5 bln rubles (107.1%) with cost-effectiveness making up 13.9%.

In January-November 2007 timber and paper export reached 11.2 bln USD, i.e. 130.1% as compared to January-November 2006.

Export volume of round logs decreased in January-November 2007 by 2.8% as compared to January-November 2006, whereas export volume of processed timber products increased by 12.2%.

In January-November 2007 import of timber and pulp-and-paper products increased by 33.8% and reached 4.8 bln USD. Furniture import volume increased as much as 1.6 times.

Business Support Bureau "Runa" www.runa.info