Russian Timber Journal 02-2023: interview with Yuri Strezhen, CEO at Praktika Group; state support measures for the Russian timber industry affected by the sanctions pressure; China reduced log imports from all the main suppliers in 2022; Vladimir Putin proposed to grant enterprises a deferment on forest area lease payments for unharvested timber; the Government of the Russian Federation increased the maximum amount of compensation for the expenses of timber enterprises for the transportation of their products; in 2022, Russia reduced the volume of logging by 13.5% to 194.6 million m³, according to Roslesinforg; Russian Railways resumed accepting sawn timber for export shipments through Kazakhstan; International Paper reaches agreement to sell ownership interest in Ilim joint venture; Segezha Group may reorient the Segezha West project to new products; the volume of furniture export from Russia dropped by 39% YoY in 2022, down to 29.5 billion rubles; Luzales and Slotex acquire Russian assets of IKEA
Russian Timber Journal 02-2023: Yuri Strezhen, CEO at Praktika Group: “This is a good time to improve the efficiency of both production and administrative processes of enterprises”; support measures mentioned by the business, relevant agencies, regions, the Government of the Russian Federation, ministers, and the President after the sanctions were imposed on Russia; according to China customs the volume of log imports from all the main suppliers in 2022 declined; Russian President Vladimir Putin proposed to grant enterprises a deferment on forest area lease payments for unharvested timber; the Government had increased the value of subsidies compensating for the expenses of Russian timber enterprises for the transportation of their products from 300 to 500 million rubles; in 2022, Russia reduced the volume of logging by 13.5% to 194.6 million m³, according to Roslesinforg; Russian Railways resumed accepting sawn timber for export shipments through Kazakhstan; International Paper announced that it has entered into an agreement to sell its 50% interest in Ilim to its JV partners for $484 million equity value; the Segezha West project in Karelia could be implemented by a different schedule because some specific features of production need to be changed; the volume of furniture export from Russia dropped by 39% YoY in 2022, down to 29.5 billion rubles; A government commission has approved the sale of Swedish furniture maker IKEA’s three plants in Russia to two Russian buyers, Slotex and Luzales would purchase the plants.
Featured Article:
— Interview with Yuri Strezhen, CEO at Praktika Group;
— State support measures for the Russian timber industry affected by the sanctions pressure;
— China reduced log imports from all the main suppliers in 2022;
— Vladimir Putin proposed to grant enterprises a deferment on forest area lease payments for unharvested timber;
— The Government of the Russian Federation increased the maximum amount of compensation for the expenses of timber enterprises for the transportation of their products;
— In 2022, Russia reduced the volume of logging by 13.5% to 194.6 million m³, according to Roslesinforg;
— Russian Railways resumed accepting sawn timber for export shipments through Kazakhstan;
— International Paper reaches agreement to sell ownership interest in Ilim joint venture;
— Segezha Group may reorient the Segezha West project to new products;
— The volume of furniture export from Russia dropped by 39% YoY in 2022, down to 29.5 billion rubles;
— Luzales and Slotex acquire Russian assets of IKEA.
Global Timber Markets News:
— Finnish logging increased in December
— Soaring softwood log imports from Latvia to China
— Canadian sawn timber production rises in November
— Reduced manufacturing volumes push US lumber prices up
— Vietnam’s wood product exports up 11.5% in December
— Large gains in EU27 imports of tropical hardwood veneer from Africa
— Vietnam remains in world’s Top 5 plywood exporters
— China Timber & Wood Products Distribution Association (CTWPDA) about the situation in the Chinese market
— Canfor to permanently close pulp line at Prince George mill
— Stora Enso to invest €30 million in Heinola Fluting mill in Finland
— US housing starts fall again in January
— Canadian housing starts drop sharply in January
— Japan’s construction of wooden houses is declining
— German pellet prices fall again significantly in February 2023
— UPM Biochemicals and HAERTOL Chemie GmbH announce strategic partnership to develop new sustainable coolants
— In 2022, Södra achieved a record profit of €699 million
— West Fraser reports Q4/2022 results
— Louisiana-Pacific reports fall in Q4 net sales
— UFP Industries 2022 sales up 11%
— Homag reports another record turnover for 2022
— Metsä Group reports strong FY2022 results
Russian News:
— Russia and Belarus are launching an experiment on timber cargos monitoring
— President of Russia cancelled mandatory sale of foreign currency earnings by exporters
— Russian Union of Industrialists and Entrepreneurs suggested replacing the “voluntary contribution” to the budget with a higher profit tax in 2023
— Techstroiproekt announced exclusive supplies of harvesting machinery by XCMG (China) to the Russian market
— Timber products shipping by railway reduced by 22% YoY, or by 11 million tons, in 2022
— Maersk divests logistics assets in Russia
— Russian Railways is asking to extend the moratorium on eastbound cargo transportation rules
— Russian Railways developed a plan of container transportation from the Far East
— Tomsk Region is asking to increase the number of border crossing points for timber products export in order to increase the return
— Russian branch of Huhtamaki changed its name to Scandipakk
— The first Russian plant producing microcrystalline cellulose is due to open in the Samara Region
— Perm Pulp and Paper Mill: virgin wood fiber can withstand up to eight recycling cycles, and this number can be increased to 12 by stock sizing
— Ilim Group supplied 1.7 million t of products to China in 2022
— A new corrugated packaging production site worth 4 billion rubles to open in Adygea
— Karelia’s authorities announced that a packaging production site will open in the industrial technopark in Kondopoga in 2023
— JSC Volga slightly increased output in 2022
— Kommersant: Viktor Kharitonin purchased Kama PPM for 36 billion rubles
— Sokol Pulp and Paper Mill is planning to build a new paper-making machine to produce unbleached greaseproof paper
— Vladimir Uyba, Head of Komi: in 2022, 58 out of 161 boiler houses in Komi were converted to biofuel, and 46 more will be converted in 2023
— Sveza to invest 100 million rubles in expanding its production of wood briquettes in 2023
— Ministry of Construction: building multi-storey wooden houses will be allowed in Russia in 2024
— Wooden Housing Construction Association proposes support measures for wooden housing construction
— Three times more mortgage loans for self-sufficient housing construction were granted in Russia through subsidized programs
— A timber processing facility to open at the former Ford plant in the Leningrad region
— UPM sells its Russian enterprise to its own subsidiary
— A timber processing center worth 1 billion rubles to open in the Khabarovsk region
— Kiilto is discontinuing commercial activity in Russia
— Angara-Timberline received the status of a priority investment project in the Irkutsk Region
— Holbit LLC will increase its sawn timber output by 50%
— Karelia’s authorities will take forest away from an enterprise that suffered from the imposition of Western sanctions
— Velsky LPK is replacing European equipment in drying kilns
— Tsentr Sibiri expands its production facilities in the Krasnoyarsk Region
— Tyumensky LPK received the status of a priority investment project of the Ministry of Industry and Trade
— The volume of production of timber products in January 2023 compared to the same period last year
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