Russian Forestry and Wood Supply Operations Analysis slide image

Russian Forestry and Wood Supply Operations Analysis

66 PRIORITY INVESTMENT PROJECTS LIST OF PRIORITY INVESTMENT PROJECTS IN FORESTRY MANAGEMENT IN RUSSIA STATUS AS OF THE BEGINNING OF 2015. AN ATTEMPT AT A SUMMARY Volume of Investor / Name of Project / City Investment, million Rubles. Incl. Total Borrowed Funds Azimut Troitsko-Pechorsky district Timber-processing production Volume of the consumed raw material material, th m³ Allowable cut size, thsd. m³ PRIORITY INVESTMENT PROJECTS Types of Products and Annual Production Volumes Imployment impact (number of man) Period of Construction Payback Period, Number of Years Sawn timber - 73 thsd m³ Glued timber-10 thsd m³ 558 No info No info No info 300 No info No info Furniture board-5thsd m³ Moulded strips- 7 thsd m³ To begin with a bit of background. To encourage the development of strategic sectors of the economy, a mechanism of governmental support to promising large investment projects has been developed in Russia, aimed at making high added value products within Russia. To get such support, an investment project has to be entered on to the so-called "List of priority investment projects." Each industry has its own list, to be maintained by the relevant federal ministry or department. In addition, such lists may exist at the regional and municipal level, and decisions on particular methods of governmental support will be made there. The particular terms of granting priority investment project status, and the preferences offered are stated in the statutory documents regulating the maintenance of such lists and measures of governmental support for projects entered on them. To encourage the development of the forestry and timber sector, a mechanism of governmental support to investment projects on the "List of Priority Investment Projects in Forest Management" has been working in Russia since 2007. Today, the Ministry of Industry and Trade of the RF is responsible for maintaining this list. The conditions of assigning priority status to a project are gradually changing (becoming stricter as a rule), therefore there is no use describing them in detail - here firstly, this information is publicly available, and secondly, it may become obsolete by the date of issue of this collection. Adding an investment project to the priority list offers several preferences to the investor, the most important ones being the right to obtain an allowable cut area without an auction; furthermore, the investor will be entitled to a reduced rent for forest sites, with a factor of 0.5, for the payback period. - We had our reasons to title this publication an ATTEMPT at summarizing the priority project data because, strange as it may seem, complete and exact data would not be provided by ANY of the departments that supposedly should have it by the nature of their functions (and make it available upon journalists' request according to media law). The long, and honestly very difficult work of obtaining, bringing together, and analyzing dissonant information from various sources resulted in the table that we are now offering you. Probably, in fact - definitely, it is far from perfect and needs supplements and corrections, however we daresay that the industry's specialists will not see a similar collation anywhere else. That is to say, you may find it of use. The first step of production was started in 2012. Now sawn timber and briquettes are being produced. Start up of power station based on bio-fuel is in planning LDK #2 (Group of Companies Vologodskiye Lesopromyshlenniki) Vytegra Production of dry sawn timber VOLOGDA OBLAST 706.6 550.8 190 136.8 Sawn timber - 89.8 thsd m³ Put into operation in 2010 with Promsvyazbank financing. In 2011 it reached full capacity Cherepovets Plywood and Furniture Plant Cherepovets Modernization of chipboard plant 148 2008-2009 (started in 2010) 5 985.3 626.8 306 97 Increase in chipboard output - up to 208 thsd m³, incl. laminated chipboard 22 2008-2009 (started in 2009) 6 According to plan, Dieffenbacher chipboard press was put into service in 2009, later reconstruction of plywood production was put into operation Patriot Velikiy Ustyug 362.9 362.9 Organization of sites for logging, wood-sawing and woodworking No information Koskisilva • Sheksna Organization of logging, and woodworking Owned by a Finnish company. Wood-sawing was set in operation in 2007 Nikolsk Forest • Nikolsk Organization of logging, wood-sawing, and woodworking Glued timber 12 thsd m³ Furniture board - 5 thsd m³ 80 50 Parquet plank - 100 thsd m² 158 2008-2015 6.9 Moulded strips-1.95 thsd m³ Technological wood chips - 11.9 thsd m³ 60 5,223.8 3,055.8 700 Sawn timber - 20 thsd m³ 363.2 Birch veneer - 65 thsd m³ Plywood - 40 thsd m³ 633 2008-2016 8.4 Softwood sawn timber - 6.5 thsd m³ Glued timber - 8 thsd m³ Planed timber - 6 thsd m³ 340 340 153.9 127.6 220 2009-2015 9.9 Wood briquettes - 11.8 thsd t Round logs -8 thsd m³ Technological wood chips - 12.5 thsd m³ Consolidation of small enterprises. It has started logging and is now building processing facilities Sawn timber-70 thsd m³ Volume of Investment, million Rubles. Investor / Name of Project / City Incl. Total Borrowed Funds Volume of the material, th m³ consumed raw Allowable cut size, thsd. m³ Types of Products and Annual Production Volumes Imployment impact (number of man) Period of Construction Payback Period, Number of Years SAU LH VO Vologdaleskhoz 821.5 821.5 824 824 Organization of logging, wood-sawing, and woodworking Planed timber - 30 thsd m³ Glued timber-20 thsd m³ 984 2009-2019 9.3 Round logs 12 thsd m³ Three plants are to be built, and one was set in operation in 2013 Novatorsky LPK ⚫Velikiy Ustyug Production of houses form glued profiled timber Sawn timber - 13.4 thsd m³ Moulded strips- 3.5 thsd m³ 323.5 318 220 213.6 75 2008-2016 8.7 Prefabrictaed houses - 280 pieces Technological wood chips - 20 thsd t NORTHWESTERN FEDERAL DISTRICT KOMI REPUBLIC No information BioLesProm Verkhovazhje settlement Mondi Syktyvkar LPK Syktyvkar Pulp cooking - 189 thsd t Wood-sawing and production of pellets Sawn timber-60 thsd m³ 300.3 300.3 64.2 49.5 Pellets 29.2 thsd t 180 2009-2015 6.5 55 Creation and modernization of timber-processing infrastructure Under constant modernization 17,110 17,110 1,000 1,935 Paper product - 145 thsd t Market pulp -60 thsd t No info 2008-2017 (production 7.8 No information started in 2010) Kholbit Mezhdurechensky district Floor plank 10 thsd m³ Syktyvkar Integrated Industrial Plant 100 m² area wood houses - 300 pices Organization of logging, and rearrangement of a wood-working plant 307.1 307.1 151.5 151.5 Moulded strips- 4.5 thsd m³ 114 2010-2016 9.2 Sawn timber - 29.1 thsd m³ Technological wood chips - 20 thsd m³ 2009-2013 Profiled timber - 14 thsd m³ Production of pre-fabricated wooden houses from solid boards, and production of structures for wooden house construction 816 716 404.3 404.3 140 Glued timber-8.6 thsd m³ Moulded strips 6.2 thsd m³ (production started in 2009) 5.7 No information No information Lesozavod #1 Ust-Vymsky district, Kazluk village Sokolsky DOK (AFK Sistema) • Sokol Sawn timber - 19.4 thsd m³ incl. export - 14.9 thsd m³ Development of production 1,000 Нет 179.8 Plant of construction elements for wooden house construction 179.8 Construction elements for wooden hosue construction - 30.7 thsd m³ Technological wood chips - 45 thsd m³ 156 2009-2010 4.9 49 Timber houses - 85 thsd m² 725.3 725.3 405 364.8 Frame-houses- 75 thsd m² Window unit 73 thsd m² Cement-shaving boards - 19.2 thsd m³ Sawn timber export - 30.1 thsd m³ Sawn timber - 15.4 thsd m³ 263 2008-2012 3.9 Used to be a part of Investlesprom Holding. Modernization of glued timber production, and pre-fabricated houses production ended in 2014. There are plans to increase production. Production of cement-shaving boards has not been realized In August 2013 technical startup. Problems with circulating assets and raw materials PechoraEnergoResurs Troitsko-Pechorsk Timber-processing production Modernization of woodworking plant Put into operation 1,253.5 1,253.5 311.3 Glued timber-41 thsd m³ Furniture board- 12 thsd m³ 181.9 Moulded strips- 4.2 thsd m³ Pellets 74 thsd t 354 2009-2012 5.8 Essential oils -45 thsd kg 2011-start of pellet production. 2013 - start of sawn timber and essential oil production. Late 2014 - start of production of furniture board was planned Luzales Priluzsky district, Kydziavidz village No information Kharovsk Forest • Kharovsk Processing of thin timber and optimization of production 400 No info No info No info Dry sawn timber - 143 thsd m³ No info 2010-2013 No info of planed profiles #6 (2015) RUSSIAN FORESTRY Furniture board- 8.8 thsd m³ Babushkinsky Business Alliance Babushkinsky district Timber-processing production Moulded strips- 11.1 thsd m³ 363.1 363.1 175.4 175.4 Sawn timber - 18.8 thsd m³ Wood pellets - 10 thsd t Technological wood chips- 14.5 thsd t 184 2010-2015 (started in 2013) 7.2 RUF briquettes are being produced. There is no information about the startup of other lines 316.79 No info No info Round log - 2 thsd m³ Sawn timber - 24.7 thsd m³ 107 Moulded strips - 6 thsd m³ Wood bruquettes - 10 thsd t Wood charcoal- 3 thsd t 76 2011-2015 No info RUSSIAN #6 (2015) 67 FORESTRY
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