Sveza may suspend plywood production

During the coronavirus pandemic, Sveza is considering several options for stress testing its plywood business, starting from a 20% cut production to a complete shutdown. Anatoly Frishman, CEO of Sveza, said this in an interview to RBC.

In each scenario, and with production cut by 20% and its full stop, Sveza has developed certain measures to reduce costs, redistribute production volumes, as well as measures to protect production so that the company remains stable, Frishman said.

However, most of the forecasts, which Sveza is working on, imply reduction in volumes, not stopping production or reducing staff, Frischman comments.

Sveza is the largest plywood producer in Russia. According to the agency WhatWood, in 2019 Sveza’ market plywood share was 27% of the total production in Russia.