Main page > Investment opportunities and economic information > Industry > Lumber Sector THE LUMBER SECTOR
Raw Materials
On January 1, 2000, the total area of the forest fund was 6.1 million hectares, 4.7 million of which were covered with wood. About 42 percent of the forest fund lands of the Leningrad Region are forests with a special economy regime called Group One forests. The rest are Group Two forests that can be used for various purposes.
The average species content shows that the forest fund is of a high quality; 37 percent are pine; 29 percent, fir; 26 percent, birch; eight percent, aspen and other trees. On January 1, 2000, the total wood reserve was 582 million cubic meters. The maximum annual wood production volume that can be harvested without harm to the environment is 12.3 million cubic meters. The calculated annual cut for main use is 9.8 million cubic meters.
Productive potential
The Leningrad Region timber sector consists of three interrelated branches, the lumbering sector, the wood processing sector, and the pulp and paper sector.
The timber sector's share of the total industrial production in the region is 23 percent.
Currently, there are about 770 enterprises including 70 - 80 large and medium-sized businesses, over 20 saw mills, 20 furniture enterprises, three pulp and paper mills, and five cardboard factories. Their capacities provide for over seven million cubic meters per year. The productive capacities would allow for production up to 12,000 cubic meters per year of plywood, up to 56,000 cubic meters per year of chipboard, up to 400,000 tons of cellulose, up to 420,000 tons of paper, and up to 200,000 tons of cardboard.
Development perspectives
The export capacity of the Leningrad Region will increase greatly after the opening of a new timber port terminal, which will require US$160 - US$190 million of investment. Its designed cargo turnover is four million cubic meters per year.
The main goals of the Leningrad Region lumber sector are:
• Increasing the degree of wood processing;
• Providing for rational wood use;
• Applying wood saving technologies;
• Changing the production structure in compliance with the requirements of the domestic and foreign market;
• Developing transport and information infrastructure.
Promising investment projects:
• Development and modernization of the Syassky Pulp and Paper Mill;
• Development of the Vyborg Pulp and Paper Mill Company;
• Construction of a wood processing plant in Boksitogorsk city;
• Development and modernization of the timber companies in the region;
• Establishment of a timber shipment company;
• Establishment of a timber port terminal in Ust-Luga. |
