Russian timber industry news #22/23-2016

– On December 6, 2016 the Solomenskiy sawmill (Petrozavodsk, Karelia) put into operation a new line of sawmilling. Thus, the plant has completed the next stage of modernization and expansion of production.

– Ladozhsky DSK CJSC postponed commissioning of an enterprise producing CLT-panels for construction of residential and industrial buildings for one year – until the end of 2017, LesPromInform magazine reported with reference to Delovoy Peterburg (St. Petersburg business newspaper).

– In December, 2016, the Techpromplit company opens a birch veneer plant in Vyshny Volochyok (Tver region) ready to produce 24,000 m3. The Angelo Cremona Italian peeling line and the Finnish steam dryer that will produce high quality product will be established at the plant.

– Owners of the SevLesPil sawmill (Komi Republic) will invest 4 billion rubles in construction of the Murashinsky plywood plant in Murashi town in the north of the Kirov region. Planned capacity of the plant is 120,000 m3 of large-format birch plywood, the launch is scheduled for the end of 2017.

– Governors of the Primorsky, Khabarovsk and Amur regions and the Jewish Autonomous Region appealed to the Ministry of Natural Resources and Environment of the Russian Federation to include three types of tilia — Amur Linden, Manchurian Lime and Tilia taquetii — in the list of species logging of which is not allowed.

– At the federal level requirements to introducing investment projects into the priority list will be tightened. According to the Head of the Forest, Pulp and Paper and Woodworking Industry Department of Minpromtorg (Ministry of industry and trade), Anatoly Artenyev, the status of priority was given to 175 investment projects in general across Russia. 96 of them with aggregate investments about 300 billion rubles and allowed wood cutting of 58 million m3 are being implemented now. 54 projects were removed from the list: many investors tried to obtain the status only to receive a preferential wood cutting and to export logs. It is now offered to raise a bar of the minimum threshold of investments for the status of the priority project from 300 to 500 million rubles in case of modernization and to 750 million rubles during creation of new production. Changes will affect also the term of granting a privilege in 50% of the wood rent rates.

– PTsBK group of enterprises carried out the first phase of the Cardboard Force investment project — commissioning of waste paper repulping and primary treatment. Modernization of the KP-06 cardboard machine will become the following phase.

– Ecowood Severo-Zapad signed the Agreement of intent with the government of the Novgorod region on construction of the plant for sawn timber and pellet production.

– China Chengtong Holdings Group became interested in the project of PPM construction in Amursk, Khabarovsk region. Newspaper Vedomosti reports about it under the pretext of the speaker at the Ministry of industry and trade. Chinese holding’s involvement was discussed when the Russian delegation headed by Viktor Evtukhov, the Deputy Minister of Industry and Trade, visited China.

– The Governor of Khabarovsk region, Vyacheslav Shport, while on a working trip to Japan took part in signing of the agreement between RFP Group and two Japanese companies.

– According to the Resolution of the Government of the Russian Federation of 12/14/2016 No. 1350 multiplying ratio to rates of the charge for wood rent is entered. 1.51 factor will be applied to minimum payment for standing timber and 1.31 factor to the minimum rates of payment for other forest resources under the document from January 1, 2017.

– Primorsky and Irkutsk regions could lose the forest management power — the forest will be managed directly at the federal level. It was declared by Ivan Valentik, the head of Rosleskhoz (Federal forestry agency).

– In the summer of 2017, Vyatsky plywood mill, LLC (Kirov region, part of the Segezha Group) will double capacities after launch of the new plywood line. Investments into the project will be 5 billion rubles. The group plans to become the second largest plywood manufacturer in the world.

– Sveza Group supplied birch plywood for two LNG tankers production (it is used as one of the layers in the construction of LNG carrier cisterns) in South Korea and negotiates for new orders, the newspaper Vedomosti reports. Production of the SVEZA Ust-Izhora mill in St. Petersburg is certified to develop this new segment. The whole plywood market for LNG tankers is estimated by Sveza at 60,000 m3 per year and the company expects to occupy at least 30% of it within ten years. According to the speaker of the company, now mills from Finland and Latvia are the main suppliers in this segment. Deliveries to shipbuilders expand the product range and allow to increase export (gas carriers are not built in Russia) against the background of the stagnating Russian plywood market, the Chief Editor at WhatWood analytic agency Kirill Baranov noted in the comment to the newspaper. Furniture and interior (44%), construction (22%), transport (12%), packing and other (22%) are the main sale segments of Sveza. Segezha Group — another large Russian forest industry holding — also plans deliveries for LNG tankers production. The company passes international certification and intends to advance production for export including Korea and Japan. The world tanker construction grows along with liquefied natural gas using, and it opens new opportunities for growth for participants of the market. It is expected that South Korea, Japan and China will construct about 100 tankers until the end of 2017, till 2020 — 175 more. In the long term Russia also plans to produce gas carriers.

More detailed news of the Russian timber industry and review of global market trends of roundwood, lumber, wood panels and pellets; exclusive articles and interviews; over 25 pages of price charts are available in our digital Russian Timber Journal.