Russian timber industry news #14-15-2016

– Egger launched an MDF/HDF production line in the Smolensk region with a capacity of 350,000 m3. It will produce MDF of standard quality and for deep milling (for hypermarket networks selling construction materials and for the furniture industry), as well as HDF for the production of flooring.

– On the site of Siblesproekt mill in the Krasnoyarsk region, a pellet workshop has opened, capable to process 250,000 m3 of sawdust. The company also plans to start the construction of a similar plant at its factory in Boguchansky district this year. Simultaneously, a contract was signed between Hekotek and other local enterprise, Boguchansky LPK (previously owned by RusForest, later sold to private investors), for the supply of full equipment line for the pellet production with a capacity of 60,000 tonnes.

– On September 7, 2016, IKEA Industry Novgorod plans to open a furniture factory in the Novgorod region with reaching rated capacity in 2018.

– According to General Director of JV Arkaim (Khabarovsk region) Alexander Lepikhov, the company has agreed with investors from the Chinese province of Jilin on financing of the mill modernization and launch of new products.

– The output of timber products in the Tyumen region in the first half of 2016 grew by 6%, and the growth drivers were plywood and pallets. The situation in the furniture industry and house-building remains difficult, but it could be pushed by furnishing of newly constructed apartments.

– The delegation of the Polish company Barlinek headed by the Chairman of the Board Wojciech Michalowski visited the Kostroma region and had a look at the forest resources in Galichsky and Antropovsky areas. Earlier at the St. Petersburg International Economic Forum, the company had signed an agreement to build an enterprise for the production of plywood, parquet board and pellets.

– The Chinese corporation AVIC Forestry will begin construction of factories in Severny and Kyshtovsky districts of the Novosibirsk region in August-September 2016.

– According to experts of Kastamonu, the volume of the Russian MDF market has ceased to decline and will start to recover in the second half of 2016. There is a trend of gradual increase in demand for MDF compared with particleboard, especially from the furniture manufacturers who account for about half of MDF consumption. Rated capacity of Kastamonu in Tatarstan reached 1.05 million m3 of MDF and 40 million m2 of laminate flooring per year, the company is the largest producer of MDF in Europe. Meanwhile, the short-term decline in the Russian market has led to the decision to increase export sales from 30 to 40-45%. In particular, 2,800 m3 were shipped to the Iranian market in the summer. According to the data available in the MDF market report of WhatWood agency, the company’s Yelabuga factory runs a Siempelkamp continuous press with a rated capacity of 565,000 m3 of standard MDF per year; in 2016, a second line was opened on the basis of Dieffenbacher continuous press, capable of producing up to 485,000 m3 of thin MDF.

– Scientific and production centre at the Biological Institute of the Tomsk State University (APIS) received a patent for a new method of treating wood products with wax to protect it from deformation, moisture, fungi and microorganisms.

– The first Deputy Chairman of the Omsk region government Andrey Novoselov had a working meeting with the CEO of the Chinese corporation Kai Sheng, Zhu Suhua. The parties discussed possible investment project in the north of the region.

– Pervaya Mebelnaya Fabrika CJSC will receive a target loan in the amount of 100 million rubles from the Fund of industry development of St. Petersburg on the acquisition of fully automated line for kitchen furniture assembly.

– The MDF factory PDK Apsheronsk (Krasnodar region) has completed commissioning on the production line of laminate flooring, with start-up scheduled for September 2016.

– RusForest presented its Q2 results in a quarter report. Northern African lumber market environment remained difficult with low prices, and its share in the company’s sales decreased from 39% in Q2 2015 to just 6% in Q2 2016. At the same time, the share of the Japanese market increased from 31% in Q2 2015 to 38% in Q2 2016.

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.