Russian Forestry and Wood Supply Operations Analysis slide image

Russian Forestry and Wood Supply Operations Analysis

86 KOMI REPUBLIC account for 14.7 per cent, of which birch accounts for 10.9 per cent and aspen for 3.8 per cent. The natural environment and old growth stands, which may be used for timber harvesting and become a commercial resource, are spread very unevenly over the republic's territory. Raw timber resources at traditional harvesting locations along public railways and motor roads have been depleted. The proportion of mature and old growth forests is negligible. The main reserves of mature and old growth stands are in the north- western and north-eastern forest districts of the region, where there are low levels of transport accessibility. Experts believe that the environmental situation in the forests of the Komi Republic is satisfactory. The main difference between the forests of the Komi Republic and other regions is availability of vast tracts of virgin forests that have never been affected by human activity and man-made impacts. In 1995, according to a resolution made by UNESCO, the United Nations educational, science and cultural orgainization, the Pechora- Ilych preserve (together with a protective and buffer zone), and the Yugyd Va national park, were listed as a UNESO heritage site under the common name "Virgin Komi Forests". The total area of these forests is 3.3 million ha. It is the largest of the primary forest areas of those that remain in Europe. THE FORESTRY AND TIMBER SECTOR (FTS) In recent years, a steady trend toward an increase in the scale of forest utilization has been observed in the Komi Republic. In particular, from 2011 to 2014, total forest utilization increased from 7.2 to 8.5 million m³, or by 18 per cent. Harvesting, wood processing, and pulp and paper companies are represented in the republic's timber industry. The FTS in Komi is one of the leading sectors of the region's economy as measured by its share of manufacturing industry output, size of tax deduction to the budget, foreign currency revenues, size of its fixed assets, and number of jobs. Development priorities in the regional timber sector include the gradual abandonment of exports of unprocessed timber and an increase in the social and economic efficiency of the sector through the integrated and rational use of available timber resources. Knowing the features of the existing production structure, regional forest resources, and their current use, the basic lines of development are the processing of low-grade timber, in particular by pulp and paper and fiberboard facilities; deeper mechanical processing of timber, forest chemistry, and bioenergy in terms of both biofuel production development and the larger scope of its use in the region. The region's government gives special attention to bioenergy sector development. For this purpose, a network of grounds for temporary wood waste storage is being arranged. The availability of such grounds not only reduces the adverse impact #6 (2015) RUSSIAN t FORESTRY of waste on the environment, but also creates favorable conditions for their use in biofuel production, in particular fuel briquettes and pellets, and in thermal and electrical energy generation. By now, four such grounds are already in operation in the region: in the Adjerom settlement and the village of Mordino (in the Kortkeros District), the Zheshart settlement (in the Ust-Vym District), and the village of Ust-Kulov (in the Ust-Kulom District). In addition the republic's budget grants subsidies for compensation of a part of costs of setting up fuel briquette and pellet productions. This approach, on the part of the region's authorities, has promoted the appearance of new facilities in the region; a new branch of the FTS is forming in the region, oriented at integrated use of raw timber and biofuel production. Also, a strategic line of development of the FTS of the Komi Republic is the construction of a second timber industry cluster (in addition to the existing Mondi Syktyvkar LPK). The Komi Republic is one of the few regions in European Russia that has the necessary forest resources to develop pulp and paper and fiberboard production. For the construction of a pulp and paper mill, Troitsko-Pechorsk District is the most favorable. According to expert calculations, timber resource extraction within the radius of 200 km from the expected mill site is evaluated at 6 million m3 of timber per year. To enable pulp and paper production, water resources are also needed, and Troitsko-Pechorsk District has them for the future facility: river water may be used for processing needs, and flow well waters, for drinking. However, the district is only partially able to provide transport accessibility for the new facility. There are two republic-level motor roads, to Ukhta and to Syktyvkar, but the road network within the district is poorly developed, and there is no river harbor. Troitsko-Pechorsk has a railway station, and that railway joins the strategic Moscow-Vorkuta trunk railroad. In the future, access to the BelkomUr line now under construction will also be possible. Prospective investment sites for timber processing facilities are located near the Mezhdurechensk and Verkhneizhemsky settlements, and have a reserve for timber harvesting of up to 300,000 m³ per year, and access to railway infrastructure. Apart from sawn timber production, a pellet facttory could be set up there, with a capacity of up to 90,000 t/year. In addition, existing timber processing facilities have significant potential for expansion and development. KEY ENTERPRISES IN THE FOREST AND TIMBER SECTOR OF THE KOMI REPUBLIC Mondi Syktyvkar JSC (in Syktyvkar) is the one of the leaders in the pulp and paper industry and Russia's largest paper product manufacturer. The mill specializes in office and offset paper and makes newsprint and top liner board and softwood market pulp. The company operates one cardboard machine and three papermaking machines and a pulp dryer, a wood yard and sulfate cellulose areas, a cogeneration plant, and a set of water treatment plants. Mondi's timber supply chain includes forest growing, harvesting, road construction, timber haulage, and forest management. In 2010, the company implemented a STEP project, one of the largest investment projects in Russia's pulp and paper industry in the last 30 years (545 million euros). This resulted in updated technologies, higher safety and environmental protection of the facility, higher product quality and competitiveness, and higher overall efficiency. The mill's total output is about 1 million tons of finished products per year. In 2014, the facility made 723,200 m³ of paper (0.2 per cent more than in 2013) and 273,900 m³ of cardboard, which is 3 per cent more than in 2013. The company and subsidiaries employ about 6,000 personnel. Syktyvkar Tissue Group LLC (in Syktyvkar) is one of Russia's leading manufacturers of tissue paper and base hygiene paper. The company's products are in high demand with many users and are well-known on Russian and Commonwealth of Independent States markets due to its high quality. Currently, the company employs about 600 people. Syktyvkar Plywood Factory (in Syktyvkar) is one of Russia's largest manufacturers of large-size plywood and wood-based furniture boards. The factory's products are used by leading construction and furniture companies in Russia, Europe, and America. In 2014, the factory made over 200,000 m³ of plywood (of which, more than one half was laminated) and over 300,000 m³ of chipboards. The factory employs about 1,500 people. Zheshart Plywood Plant LLC (Zheshart settlement, Ust-Vym District) is one of the three largest timber industry companies in the Komi Republic; in terms of birch plywood output, it is a leader in the North- Western Federal District. The company makes a broad range of products, including 300 types of plywood of different size and thickness, laminated plywood, and medium density fiberboards / chipboards. In 2014, the combine manufactured over 150,000 m³ of plywood, of which nearly one-third was laminated, and about 8 million m² (conditional) of MDF boards. Currently, the company's staff exceeds 1,700 people. Knyazh-Pogost Fiberboard Factory is one of Russia's largest companies making hard fiberboard by the wet method. Its regular customers are companies in the construction, furniture, and automobile industries. Last year, the factory made about 12.5 million m² (conditional) of fiberboards. The factory's employs more than 300 people. SevLesPil LLC (in Syktyvkar) was established in May 2000, with commercial product output starting in 2002. Since then, the company has become the leading sawn softwood timber producer in the Komi Republic. Raw materials are supplied to the facility by its own harvesting division and by the region's largest harvesters. The main product is sawn softwood timber. Over 190,000 m³ of sawn timber was produced in 2014. The company employs more than 400 people. SLDK Severny Les LLC (second name: Syktyvkar LDK, Syktyvkar) specializes in the production of sawn timber for the worldwide market. Nearly 180,000 m³ of sawn timber was produced in 2014. The sawmill employs more than 600 people. Luzales LLC, Syktyvkar: This sawmill is a leading harvesting and wood processing facility in the republic. Its products are sold not only on the Russian market but also on markets in Western Europe and the Middle East. The sawmill runs a full cycle of timber processing, and makes sawn timber and high quality planed and glued/laminated timber products. Norwood SM, Syktyvkar, is a subsidiary of Norvik Group of Iceland. The company's main activities are timber harvesting, timber processing, trade in sawn timber, and its shipping within Russia. The sawmill is located in Syktyvkar and specializes in sawn softwood timber, both of natural humidity and shipping dry. Ninety per cent of the company's products are sold outside Russia. More than 40,000 m³ of sawn timber was produced by the company in 2014. PechoraEnergoResurs LLC (Troitsko-Pechorsk settlement), which has been operating since 2007, is one of the most rapidly developing companies in the Russian timber processing industry. The company's assets comprise a harvesting division and an added-value timber processing factory making softwood trim moldings and birch furniture boards, as well as wood fuel pellets and conifer essential oil. The company's employs slightly less than 150 people. Azimut LLC (Troitsko-Pechorsk settlement) is a priority investment project for forest management in the Komi Republic, the goal of which is to establish a new hi-tech timber processing complex including harvesting, wood processing, and generation of electric and thermal energy from wood waste. All the components of the project suggest the use of the best available technologies. The first phase of the project was completed in August 2012, with the commissioning of the sawmill area and production of fuel briquettes from wood waste. Expected annual product output after reaching the full-scale capacity will be over 80,000 m³ of sawn timber, over 5,000 m³ of planed trim moldings, 10,000 m³ of laminated beams, and 5,000 m³ of furniture boards. Allotted to the company are forest resources with an annual harvesting volume of nearly 400,000 m³. Timber harvested in 2014 was about 70,000 m³. The company employs about 150 people. Lesozavod No. 1 LLC (Kazluk settlement, Ust- Vym District). Having built and commissioned a new sawmill in August 2013, the company implemented the first phase of the project to construct a factory for the manufacturing of wooden house structural elements. The sawmill's design capacity is 120,000 m³ of dry sawn timber per year. A wooden-house-component production facility is planned for commissioning in 2016. Investment in the project is calculated at more than 1 billion rubles. Syktyvkar Integrated Industrial Plant, LLC, Syktyvkar, is the leader in wooden house construction in the Komi Republic. The enterprise specializes in design and construction of up-to- date wooden structures for the construction of individual residential houses, blocks of flats, social facilities, and other industrial/business facilities. The plant has set up manufacturing of certified wooden construction elements: wooden framework panels, solid wooden panels using Massiv-Holz- Mauer (MHM) technology, laminated beams, and roof frames. In addition, the enterprise produces laminated boards and a broad range of high- quality wooden finishing materials (Euro battens, decorative battens, imitation beams, floor planks etc.). In 2014, the company made more than 150 million rubles' worth of marketable products. The company employs slightly less than 140 people. Maria ALEKSEYEVA Government authorities responsible for forest industry Head of Komi Republic Gaizer Vyacheslav Mikhailovich Russian Federation, 167000, Komi Republic, Syktyvkar Ul. Kommunisticheskaya, 9 Tel.: +7 (8212) 28-51-05, 28-51-12, 28-51-70 fax +7 (8212) 21-43-84 [email protected], www.gov.rkomi.ru regulation of Komi Republic Ministry of Development of Industry and Transport of Komi Republic Minister Samodelkin Andrey Nikolaevich Russian Federation, 167982, Komi Republic, Syktyvkar Ul. Internatsional'naya, 157 Tel.: +7 (8212) 24-03-48, 24-06-21 fax +7 (8212) 21-62-14, 24-40-37 [email protected] www.minprom.rkomi.ru Ministry of Economic Development of Komi Republic Minister Barshmakov Vladimir Vladimirovich Russian Federation, 167000, Komi Republic, Syktyvkar Ul. Internatsional'naya, 108 Tel. +7 (8212) 25-53-01, fax +7 (8212) 25-53-11 [email protected], www.econom.rkomi.ru Ministry of Natural Resources and Environmental Protection of Komi Republic Minister Polshvedkin Roman Viktorovich Russian Federation, 167000, Komi Republic, Syktyvkar Ul. Internatsional'naya, 108A Tel. +7 (8212) 24-07-44 fax +7 (8212) 44-13-90 [email protected], www.mpr.rkomi.ru Forestry Committee of Komi Republic Chief Shliamin Andrey Valerievich Russian Federation, 167982, Komi Republic, Syktyvkar Ul. Internatsional'naya, 108A Tel. +7(8212) 20-57-87 fax +7 (8212) 20-57-87, 24-43-27 [email protected] www.komles.rkomi.ru RUSSIAN #6 (2015) FORESTRYU 87
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