WhatWood agency - Timber industry research & analytics

Name: WhatWood agency - Timber industry research & analytics
Address: Moscow, RU
Telephone: +7 905 704 51 33

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WhatWood agency - Timber industry research & analytics

WhatWood is a news and analytics agency founded in 2012 by alumni of Moscow State University of Forestry.

03/05/2023

Production of toilet paper reached a historic high in Russia in 2022

Toilet paper production reached a historic high in Russia, says the Rossiyskaya Gazeta newspaper referencing data from Roslesinforg. The toilet paper output increased by 21.1% YoY in 2022, up to 6.986 billion rolls.

03/05/2023

Segezha Group sold its European assets that produce paper packaging

Segezha Group closed the deal on selling Segezha Packaging, the enterprise that produces paper packaging in Europe, Mikhail Shamolin, President, told journalists on March 31, 2023. The transaction amount is not disclosed.

Segezha Packaging includes seven plants producing paper sacks and bags in Germany, Denmark, the Netherlands, Italy, the Czech Republic, Turkey, and Romania. The combined capacity of the Group's European plants is 769 million paper bags per year. Before the European sanctions were imposed, paper for the production used to be supplied from Segezha Group's Russian enterprises.

Mikhail Shamolin explained that the assets were sold because of the anti-Russian sanctions. After they were imposed, the company was no longer able to maintain the operation of its European business. The eighth package of EU sanctions adopted in October 2022 bans the import of wood pulp and certain types of paper and cardboard from Russia.

http://whatwood.ru/english/segezha-group-sold-its-european-assets-that-produce-paper-packaging/

03/05/2023

Cherepovetsles is opening a moldings production site in the Vologda Region

Cherepovetsles has launched a line of planed moldings at its Koskisilva enterprise in the Sheksninsky District, which used to belong to Koskisen. In March 2022, the Finnish company announced the termination of its operations in Russia and sold the asset to the Russian group.

The commissioned production capacity will enable the enterprise to produce up to 55,000 m³ of planed products per year. The line's previous capacity was 20,000 m³ of sawn timber per year. The total value of investments in upgrading the production exceeded 100 million rubles.

02/05/2023

Slotex closed the deal on purchasing Ikea Industry Novgorod

Invest Plus LLC closed the deal on purchasing IKEA's largest production asset in Russia — Ikea Industry Novgorod, as reported by the Agency for Communication Strategies. The beneficiary owner of Invest Plus LLC is Vadim Osipov, Director General and co-owner of Slotex Group. The transaction amount is not disclosed.

"The process of making this deal was challenging and quite long. We are sincerely grateful to all its participants, i.e., IKEA, the authorized Russian and Swedish regulators, and the Russian Ministry of Industry and Trade, for their constructive position. Buying this plant is not the end of the journey for us, it is only the beginning. We have come with a specific plan for long-term development of this production site, which is unique for Russia," Vadim Osipov, Director General at Invest Plus LLC, commented on the event.

Ikea Industry Novgorod is the largest production venue previously owned by IKEA in Russia. This enterprise consists of a laminated particleboard production plant and a cabinet-type furniture factory. The production capacity of the laminated particleboard plant exceeds 500,000 m³ of sanded particleboard. The cabinet-type furniture factory produces over 7 million cabinet cases and kitchen furniture per year.

http://whatwood.ru/english/slotex-closed-the-deal-on-purchasing-ikea-industry-novgorod/

12/04/2023

Russian plywood output rose in February

According to the data published by the Federal State Statistics Service (Rosstat), the output of Russian plywood grew by 21% in February 2023 compared to the previous month, reaching 245,000 m³. This is the highest monthly output since July 2022, when the European Union, which was the largest buyer of Russian plywood at the time, introduced a de-facto embargo on timber products from Russia.

Nevertheless, the plywood output volume was still considerably smaller in January-February 2023 compared to the same period last year: -36.5%, down to 448,000 m³. The output in February 2023 reduced by 32% compared to February 2022.

http://whatwood.ru/english/russian-plywood-output-rose-in-february/

12/04/2023

President of the Russian Federation suggested including the spending on windows, doors, and built-in furniture in amounts covered by mortgage loans for new homes

The President of the Russian Federation instructed the Government, together with DOM.RF and involving the Central Bank and the Deposit Insurance Agency, to consider including the spending on Russian-made windows, doors, and built-in furniture in the amount covered by mortgage loans for new homes, according to the Kremlin website. This assignment shall be fulfilled by June 1, 2023.

The Cabinet of Ministers in cooperation with DOM.RF, the Central Bank, and the Deposit Insurance Agency shall also develop additional support measures for private housing projects that use Russian timber products, specifically, by reimbursing banks and DOM.RF for the revenue lost because of the subsidized mortgage loans.

12/04/2023

Russia exports almost no unprocessed

In 2022, the volume of roundwood export from Russia dropped by almost 4 times, down to 3.5 million m³. Supplies to China account for 80% of the export volume. Russia has never exported so little unprocessed timber in its contemporary history. The plummeting roundwood export was a direct consequence of the introduced customs tariff regulation measures, export customs duties, bans, and restrictions imposed by both Russia and the European Union in 2022.

Previously, Finland had annually imported 5-6 million m³ of birch pulpwood from Russia, mainly from its northwestern regions. Logistical difficulties and the limited number of checkpoints for exports to China also had a significant impact on sales to the eastern markets.

Roundwood (unprocessed birch logs) is now in fact exported only to China. According to WhatWood estimates, the export of birch roundwood to China reached 2.4 million m³ in 2022 (-12% YoY), which includes 1.9 million m³ (+15% YoY) of birch veneer logs.

http://whatwood.ru/english/russia-exports-almost-no-unprocessed-timber/

21/02/2023

Russian Railways resumed accepting sawn timber for export shipments through Kazakhstan

As TASS reports based on the information obtained from the press office of Russian Railways, the company resumed accepting sawn timber for export transportation by rail through Kazakhstan.

As the Group notes, the measures adopted by the government and aimed at supporting exports made it possible to transport timber products by rail through the Russian-Chinese border crossings as well as through the Russian-Kazakhstan ones to be then further transited to China and other countries.

Government Decree No. 2552 dated December 30, 2022, amending the rules for the export of certain types of products, came into force on January 31.

http://whatwood.ru/english/russian-railways-resumed-accepting-sawn-timber-for-export-shipments-through-kazakhstan/

21/02/2023

Vladimir Putin proposed to grant enterprises a deferment on forest area lease payments for unharvested

At the meeting on the development of the timber industry, Russian President Vladimir Putin proposed to grant enterprises a deferment on forest area lease payments for unharvested timber.

"The amount of timber harvested has declined, people pay lease payments but there is no output: this injustice definitely needs to be rectified. Besides that, it should be allowed to write off such payment obligations in an amount not exceeding the actual expenses for the transportation of products, less the relevant subsidies, understandably, that is less those 500 million rubles that are provided as of today," the President noted.

Vladimir Putin emphasized that the measure is temporary and, first of all, should focus on timber enterprises located in the Northwestern Federal District.

http://whatwood.ru/english/vladimir-putin-proposed-to-grant-enterprises-a-deferment-on-forest-area-lease-payments-for-unharvested-timber/

21/02/2023

The Government of the Russian Federation increased the maximum amount of compensation for the expenses of timber enterprises for the transportation of their products

As Mikhail Mishustin, Prime Minister of the Russian Federation, announced at a meeting with deputy prime ministers, the government had increased the value of subsidies compensating for the expenses of Russian timber enterprises for the transportation of their products from 300 to 500 million rubles. The maximum compensable share of actual transportation costs of timber enterprises had been increased as well: from 80 to 100%.

The Prime Minister noted that the decision would be valid for the ports of the Northwestern Federal District until June 30, 2023. The head of the Cabinet also instructed the Ministry of Industry and Trade and the Russian Export Center to promptly respond to requests from companies to subsidize their transportation costs.

http://whatwood.ru/english/the-government-of-the-russian-federation-increased-the-maximum-amount-of-compensation-for-the-expenses-of-timber-enterprises-for-the-transportation-of-their-products/

23/01/2023

21 timber companies of the Krasnoyarsk region benefited from state support measures in 2022

In particular, companies were granted a deferral for forest area lease payments to be paid to the regional treasury as provided for by a law "On state support of timber enterprises of the Krasnoyarsk region" adopted in June 2022.

Harvesting enterprises will have to pay deferred payments by March 31, 2023. With the funds saved, companies modernized their production facilities, repaired their equipment and purchased new pieces, and maintained jobs.

Tekhinmash LCC (Irbeysky district, sawn timber production) used those funds to expand staff and to purchase new equipment for the transportation of timber. RegionLes LLC (town of Kodinsk) modernized its production facilities, which allowed to increase the output of products by 40%.

The regional Ministry of Forestry is considering the possibility of extending this support measure for harvesting enterprises for 2023 as well.

http://whatwood.ru/english/21-timber-companies-of-the-krasnoyarsk-region-benefited-from-state-support-measures-in-2022/

20/01/2023

Rosleshoz, together with the regional agencies, to address the issue of calculating forest area lease payments based on the actual amount of timber harvested

The corresponding instruction was given by Alexander Kozlov, Head of the Ministry of Natural Resources and Environment, during a meeting of the committee of the Federation Council for the development of the forest sector held in Vologda. Rosleshoz was instructed to elaborate new approaches to setting fee rates together with regional forestry authorities. It is planned to define a mechanism for calculating lease payments based on the actual amount of timber harvested.

The minister also supported the proposal of the Arkhangelsk region to introduce a moratorium on the termination of lease agreements with conscientious forest users. Rosleshoz will elaborate criteria and conditions for pre-trial consideration of such cases, which will support harvesting enterprises interested in maintaining their operations and saving jobs at enterprises. As Ivan Sovetnikov, Head of Rosleskhoz, commented, the agency is consistently and gradually working to lower administrative barriers in the industry.

"As for the measures to support forest users, we are currently cooperating with the Federal Customs Service to switch to forming customs declarations automatically, without the participation of employees. This will shorten the procedure time to 3 minutes and, as a result, will reduce work effort required," said Ivan Sovetnikov.

http://whatwood.ru/english/rosleshoz-together-with-the-regional-agencies-to-address-the-issue-of-calculating-forest-area-lease-payments-based-on-the-actual-amount-of-timber-harvested/

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