The Government of Karelia Summed up Development of Forest Industry in 1Q\09

Today almost total amount of woodworking companies has come from the forced hibernation of crisis - while there are some problems remaining.

As Minister of Forestry Complex Vladimir Yuryev reported, there problematic relationship between loggers and consumers of wood still remained: the payment for timber did not always pay on time. The budget of Karelia Republic did not receive significant amounts of forestry. Revenue amounted to only 70% in 1Q/2009. The volume of timber export in Karelia amounted 78% compared to 1Q/2008. There is still declining of production volumes in Segezha Timber Mill. Kemsky sawmill is also in trouble – now it is searching investors that could assume the development of the business.

However, there is a positive dynamics of forestry, Minister noted: as compared with the beginning of 2009 timber companies have worked much more active in March. The increase in production noted in the Olonetsles, Ladenso, Porosozero, Shuyales, Leseko Nord, Lahdenpohsky, Svedvud Karelia and Kostomuksha. As the Minister said Pulp and Paper Mills operated stably, the dynamics of the production of newsprint in the current year is positive; the production of paper bags has reached its pre-crisis indicators.

In March woodworking companies came from the forced hibernation. During the 1Q/2009 the index of production of wood processing has reached 51%. The volume of lumber production was 172% in February: the growth is related to the recovery of demand in the market. Today there are 17 major timber complexes working while at the beginning of the year there were only 8 (from the total amount of 20).

Informational resource:
RussianForestryReview.com, Vesti Karelia