ISSN 1995-7343 ISSN Russian Forestry Review № 4 www.LesPromInform.com Russian Forestry Review CONTENTS #4 (2011) Specialized information-analytical magazine ISSN 1995-7343 THE RUSSIAN («Российское лесное обозрение») специализированный FORESTRY COMPLEX: информационно-аналитический журнал на английском языке Периодичность: 1 раз в год Издатель: ООО «ЭКОЛАЙФ» A GENERAL OVERVIEW Адрес редакции: Россия, 196084, Санкт-Петербург, 8 Лиговский пр., 270, офис 17 EDITORIAL TEAM: General Director Svetlana YAROVAYA [email protected] Editor-in-Chief, Business Development Director INTRODUCTION ..................................................................................... 6 Oleg PRUDniKOV [email protected] A COMPLEX VIEW International Marketing Director The Russian Forestry Complex: a General Overview .................................. 8 Elena SHUMeyKO [email protected] The Growing Russian Forestry Industry Art-Director Will Receive Better Equipment and Service............................................12 Andrei ZABELin [email protected] Designers RUSSIA’S TIMBER INDUSTRY Anastasiya PAVLOVA & Alexander UsTenKO PR and Distribution EMBARKS ON A CIVILIZED Elena SHUMeyKO [email protected] COURSE OF DEVELOPMENT 24 Proofreaders Simon PATTERSON & Shura COLLinsON INVESTMENTS CONTACTS Russia 's Fading Competitive Edge ........................................................14 Russia St.Petersburg, 196084 Meeting the Challenge of Harsh Harvesting Conditions ...........................22 Ligovsky Ave., 270, office 17 Tel./fax: +7 (812) 640-98-68 FORESTRY E-mail: [email protected] Russia’s Timber Industry Embarks on a Civilized Course of Development ...................................................24 A Flammable Summer ..........................................................................27 www.RussianForestryReview.com SAWMILLING Circulation: 5,000 samples Published since 2006 Russian Sawmilling Industry ................................................................32 The edition is printed in ‘PremiumPress’ typography (St. Petersburg) Отпечатано в типографии «ПремиумПресс», Санкт-Петербург denotes paid advertisement articles The founder is Svetlana Yarovaya. The license is PI № FC 77-26386, dated by 8 December, 2006. It is registered by the North-Western circuit inter- regional territorial administration of the Ministry of printing of the RF, broadcasting and mass media. The editorial board is not responsible for the subject matter of advertising materials. Any reprinting of A FLAMMABLE informational materials may be carried out only with the written consent of the editorial board. © Russian Forestry Review, 2011 SUMMER 27 WOOD-BASED PANEL PRODUCTION Republic of Bashkortostan ................. 154 Prospects for the MDF and Particleboard Republic of Tatarstan ........................ 168 Industry in Russia ..............................37 Ulyanovsk Region ............................. 182 RUSSIAN REGIONS 44 WOOD CONSTRUCTION CONTACT DATA OF LARGE-SCALE COMPANIES Wood Construction in Russia in OF RUssiAN FORESTRY COMPLEX the 21st Century: the Finnish View ......41 Logging ........................................... 196 Wood-Sawing .................................... 199 RUSSIAN REGIONS Woodworking .................................... 205 Bryansk Region ..................................44 Production of Plywood Kaluga Region ....................................56 and Wood-Based Panels ..................... 212 Kostroma Region ................................66 Furniture Production ......................... 214 Moscow Region ...................................78 Wooden House Construction ............... 220 Pulp-and-Paper ................................. 223 Vladimir Region ..................................92 Bioenergy ........................................ 226 Yaroslavl Region ............................... 102 Kirov Region .................................... 112 Nizhny Novgorod Region .................... 124 MAJOR WORLDWIDE Perm Krai ........................................ 140 EXHIBITIONS IN 2011 ........................ 228 CONTACT DATA FOR TIMBER COMPANIES (p. 196) LADIES AND GENTLEMEN! You are holding the latest copy of the English- result of the reforms, the logging industry suffered language digest of a survey of the Russian forestry above all, and the crisis that followed finished complex – Russian Forestry Review № 4.The key the job – over half of all logging enterprises theme of the articles in this issue is an analysis of closed down. Another reason was the low level of how the Russian forest industry has overcome domestic consumption of wood products in Russia. the global crisis, which undoubtedly had a strong Major Russian forestry enterprises – almost 80% impact on the alignment of forces on the world of all production in the industry – were in severe timber products market. dependence on the situation on the international market. The Russian economy survived the serious phase of the crisis, although at the cost of major losses. The previous issue of RFR was printed literally at Many companies that were among the leaders by the height of the crisis, at the start of 2009, and the volume of deals and investments before autumn at that time it was extremely difficult to make 2008 went bankrupt, or lost a considerable part any forecasts. Today we may already sum up of their assets. In summer 2008, the majority of the results of work in the crisis and post-crisis experts, both in Russia and abroad, were certain period, i.e. enterprises that experienced financial that a slump in the world economy would not difficulties either closed down, or paid off their significantly harm Russia, or other BRIC countries. debts, or were able to reconstruct them. Companies actively took out loans to develop their The economy of the industry is recovering, business, assuming that there would be an increase although quite slowly – business is being careful, in sales, and banks gladly gave them loans, without preferring to invest its own funds in production, taking much trouble to check the financial stability and is reluctant to take out loans. In this issue, you of firms. can read about what trends currently predominate In October 2008, the Russian market literally in the Russian forestry complex. collapsed, and analysts have yet to work out why For their participation in the preparation of Russian negative phenomena snowballed to such an extent. Forestry Review № 4, we would like to thank the The forestry complex was among the industries companies Pöyry, Indufor, BIS Shrapnel, Finnish that suffered the most. There are many reasons Forest Research Institute, and also al the experts for this. Even in the successful year of 2007, the and journalists who wrote the articles presented majority of Russian forestry enterprises were only here. just breaking even, because of outdated facilities and technologies. Furthermore, the Russian forestry We would also like to express our special gratitude industry was at a stage of extensive reforms at the to the companies John Deere, Caterpillar and Mayr time, and furthermore it was often difficult to say Melnhof Holz Yefimovsky for financial support in that the state’s decisions were consistent. As a the publication of this issue of RFR. 6 # 4 (2011) A CompleX VieW Table 1. Industrial Production half-year results for 2009 and 2010. Wooden H1/2009 and H2/2010 (Russian Federal furniture is not classified together with other wood- THE RUSSIAN FORESTRY State Statistics Service in July 2010) based products. However, since panelboards are used for furniture production, it can be assumed that Forestry Industry Change H1/2009 to H1/2010, % the furniture industry concentrating on wooden COMPLEX: furniture grew some 10 %. Sawn wood +6.0 A GENERAL OVERVIEW Poles +7.5 INVESTMENTS IN RUSSIA Sleepers -12.0 Investment in the Forestry Industry in 2009 FINANCIAL RECOVERY or the equivalent of 12% of the budget or 3% Particleboard +24.00 Foreign investment in Russia amounted to some of the Gross Domestic Product (GDP). The year 2009 was, just as in other countries, Fiberboard +9.5 82 billion USD in 2009, or 21% less than the challenging in Russia. Additional funds came from the Central Bank. Plywood +31.9 previous year4. Most investments were made Most of the support was meant for the strategic toward the end of the year. However, in 2010 it seems that Russia has Doors +0.3 private sector, such as the car industry and recovered from the worst and is well on the way Windows +3.8 The wood products industry gained some 682 banking sector. towards growth. Relatively fast growth in China, Flooring +4.2 million USD. Cyprus represented the largest India and some other developing countries is The crisis budget for 2010 is some 195 billion investor, and Finland the second largest, in the likely to keep oil and gas prices high, stimulating rubles, along with 230 billion rubles that was Pulp +7.5 wood products sector. However, this probably Russia’s recovery. not used in 2009 and was accordingly transferred Paper +7.0 excludes small-scale Chinese sawmill investments to the 2010 budget. in the Sino-Russian border region. Figure 1-1 shows that the International Monetary Cartonboard +1.5 Fund (IMF) has forecast 70% growth between The 2010 budget is mainly focused on the Pellets +11.8 It might be worth noting that the investments 2009 and 2014 for the Russian economy. Growth manufacturing sector, with strategic companies Wooden houses +17.6 marked under Cyprus were mostly investments is forecast to