Russian Timber Journal 07-2018: WhatWood interview with Ali Kiliç, General Director of Kastamonu in Russia; the minimum growth rate of sawnwood exports from Russia in the last seven years; and sawn softwood exports from Russia to China, Japan, Europe by producers

The devaluation of the ruble has led to a deplorable state of the already unsteady economy in our country. However, the reliance on import substitution stimulates domestic enterprises not to stop in development. And while large companies continue to operate in Russia, there probably isn’t a huge crisis in the furniture market. We asked the General Director of Kastamonu in Alabuga SEZ, Ali Kılıç, about how it is possible to achieve their goals and implement bold projects in unpredictable economic conditions.

― Ali, would you please tell me, what are the development prospects of MDF/HDF of the Russian markets and laminate flooring for the next few years?

― In Russia, the crisis is gradually coming to an end. Demand and consumption in the MDF/HDF market are gradually stabilizing. But the construction of large-scale MDF/HDF production requires a lot of investment, so, most likely, in the near future it will be difficult to attract them to our country. However, those projects that have already been financed will continue to develop further…

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In the first quarter of 2018, the supply of sawn softwood from Russia increased by 1.8% (YoY) to 6.2 million m³, which is the minimum growth rate in the first quarter on an annual basis from 2012 (in the first quarter of 2012, there was a decrease of 5.2% YoY).

The decline was influenced by the slowdown of sales to China. Deliveries to China have practically not grown in comparison with the first quarter of 2017 (+0.9% YoY, this is the worst figure since 2013). Ecological inspections of woodworking companies from the side of supervisory and controlling state departments of China were made. The tax on “environmental protection” was introduced on April 1, 2018.

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Dmitry Medvedev held a meeting in Karelia on the preservation and protection of forests and advanced wood processing

July 20, 2018, Prime Minister Dmitry Medvedev held an outreach meeting on the preservation and protection of forests and advanced wood processing in Petrozavodsk (Republic of Karelia). WhatWood publishes the theses and the outcome of the meeting.

Sawn softwood sales by Russian producers to Europe, China, Japan, Egypt in 1Q/ 2018; price indices for sawn softwood; and a review of announced investment projects in the timber complex — read in the latest issue of the analytical Journal of Russian Timber Journal №07-2018.