Russian Forestry and Wood Supply Operations Analysis
WOODWORKING
Diagram 3. OSB factory projects in Russia
Novovyatsky ski-complex
Hillman
2011
2012
Working mills
Cap. 1000 M³
700
WOODWORKING
Diagram 5. Import of OSB to Russia
in the 1st half of 2013
and in the first half of 2014 in kind
mill $USA
Diagram 6. OSB imports to Russia
in the 1st half of 2013 and in the first half
of 2014 in monetary terms
Tblc.M³
300,0
Swiss Krono
600
Kastamonu
550
100,0
26,5
90,0
8,6
9.7
4,2
4,5
11,9
80,0
3.1
250,0
500
1,2
STOD
70,0
4,3
1,3
22
14,4
66,0
200,0
56,9
450
60,0
17,1
17,2
50,0
150,0
400
65,3
81,5
Kranospan Egorevsk
40,0
21,6
Kronospan Egorevsk
21,6
1st stage
2nd stage
100,0
Kronospan Ufa
350
30,0
20,0
50,0
97,0
91,0
DOK Kalevala
Baikalsky DOK
300
31,2
26,4
10,0
1st stage
0,0
250
0,0
LPK Partner-Tomsk
Ugra Plit
1st half 2013
1st half 2014
DOK Kalevala
1 2nd stage
200
Krestetsky LPK
150
Romania Latvia
■Germany Poland
Canada
■Ireland
China
Others
1st half 2013
■Romania Latvia
■Germany Poland
1st half 2014
Canada
Ireland
■China
Others
Source: Customs declarations, estimates of WhatWood
Mariinsky plinty
kombinat
100
2013
2014
2015
2016
Projects close to commissioning
2017
RosAgroUlyanovsk
Projects under construction
or active planning
2018
50
Source: WhatWood, 2014
Note: The commissioning dates of the factories and their rated capacities were taken from press releases of the companies and from WhatWood
Exports
The most expensive and high-quality boards on
the Russian market are imported from Germany.
Canadian and especially Chinese boards are
considered economy-class products. The Romanian
and Latvian products are located in the middle
price segment, where boards from the Russian
factory Kalevala compete with them.
Imports from Romania grew last year due to
an increase in the capacity of the Egger and
Kronospan factories. The latter completed an
investment project worth of 40 million euros at the
factory in Brasov in September 2013 and doubled
OSB capacity to 600,000 m³. Because of that,
Kronospan partially transferred deliveries from
its Bolderāja facility in Latvia to the Romanian
company, which resulted in a reduction of imports
from Latvia.
Deliveries from Belarus and Ukraine may be
potentially attractive for Russian importers. In
2012, production was started at Krono-Ukraine,
and in August 2014, the Kronospan OSB factory
in Mogilev, Belarus, began pilot production with
Diagram 7. Production of plywood in China in 1974-2013
an output of 300,000 m³ per year. It immediately
began searching for regional exclusive distributors
in Russia (diagrams 5 and 6).
Prospects for OSB development
The recovering wooden house market in the US
has begun to generate high demand for OSBS
on the North American continent. It is logical
to assume that in order to maintain sufficient
margins, the US and Canadian manufacturers of
wood boards will ship the products to the local
OSB with a capacity of 130,000 m³. The factory is
capable of manufacturing chipboards on the same
line. The total value of the project amounted to
1.8 billion roubles.
In 2014, the holding company Kronospan launched
the fourth OSB factory in Russia with a capacity
of 350,000 m³ in Yegoryevsk, a Moscow satellite
town. The company intends to expand production
at this site up to 700,000 m³ and is trying to
find a solution of the problem at the site for the
construction of the second line.
Consumption
According to our observations, as the position
of OSB is strengthening in the Russian market
of building materials and structures and as the
product is better recognized by consumers, the
scope of application is expanding (diagram 4).
Redecoration of rooms and premises, including
blocks of flats, is becoming an important area.
However, the consumption of OSB is directly
dependent on the state of the construction sector
which is the main driver of demand for the boards.
Diagram 4. Volume of OSB consumption in Russia in 1997-2014
Production
1 000 m³
900
800
700
Imports
600
500
400
300
200
100
0
1997
1998
1999
2000
2001
2002
2003
2004
42
#6 (2015) RUSSIAN
FORESTRY
In 2013, the OSB exports from Russia amounted to
about 7,900 m³. The entire volume was delivered
to Commonwealth of Independent States (CIS)
countries by the Novovyatsky Ski Factory and by
rare traders. Probably, Russian manufacturers will
continue to consider the possibility of OSB exports
to Central Asia in the same way that producers
of chipboards and fiberboards have proceeded.
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Imports
Despite OSB production in Russia, imports continue
to meet the main demand of the consumers. In
2013, deliveries from abroad increased by 23%
to 695,000 m³ as compared to the level of 2012.
In the first half of 2014, the imports were 283,600
m³, which is 3.4% less than in the first half of 2013.
According to preliminary estimates, volumes of
imports will drop in 2014, with the main reason
being the devaluation of the national currency
and, as a consequence, the rising cost of importers'
foreign currency contracts. An equally serious
reason is the substitution of Russian factories'
products for imported boards.
Source: Pöyry Management Consulting
In imports, the Kronospan group dominates,
and mainly supplies the boards from a factory
in Brasov, Romania, and from the Latvian company
Bolderaja. Other big suppliers are Egger
(a Romanian factory in Radauti), Glunz (Germany),
Norbord and Louisiana-Pacific (both from Canada).
1,000 m³
50 000
45 000
40 000
35 000
30 000
25 000
20 000
15 000
10 000
5 000
0
The production of plywood in China
almost doubled for 10 years
to 44.7 million m
3
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
6662
2000
2000
2001
2001
2002
21 589
ZOOZ
2003
9002
1002
2006
2007
44 681
Source: UNECE/FAO TIMBER database, 2014
RUSSIAN #6 (2015) 43
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