Russia is the Market that the Woodworking Machinery, Equipment and Technology suppliers are looking to for opportunities in 2011

In an interview with www.derewo.ru the Eumabois President, Mr Franz-Josef considers Russia to be one of the best markets for Woodworking machinery manufactures to target. Russia with out a doubt has Hugh potential with Russia’s 82 billion cubic meters of forest which represents 25% of the worlds stock of Timber therefore Forestry and Woodworking value-added industries are one of the major industrial sectors of Russia. With its resources of timber Russia’s Woodworking technology sector lacks modern Machinery and associated Woodworking technology so there are Hugh potential for Manufactures of a wide range of Woodworking technology such as in Forestry technology for forest care and protection, construction and maintenance of forest roads and tracks, forestry data acquisition and processing, training and further education, conservation and recreation facilities in the forest, wood cropping and harvesting, safety and hygiene, first aid, vehicles for timber transport, articulated semi-trailers, accessories for forestry machinery and vehicles, timber processing, heating with timber, wood pelletizing, tree nurseries, round-timber management, equipment for measuring volume and weight, cropping services, round-timber logistics, wood trade, planting, care of young trees and timber stands, pruning technology. In the wood working machinery technolony industry that solid demand for Boring Machines, Edgebanders, Panel Saws, Routers, Tenoners, Bandsaws, Boring Machines, Door and Window Manufacturing Equipment, Finger Jointing Equipment, Flooring Manufacturing Equipment, Gang Rip Saws, Moulders, Optimizing Rip and Cross Cut, Planers & Surfacers, Roughmill Systems, Routers, Scanners -- Vision Systems, Embossing Machines, Finishing Systems, Foiling Machines, Sanders, Shape & Sanding, Assembly Clamps -- Case, Door, Drawer & Frame, Clamp Carriers, Post Forming Equipment, Presses & Laminating Machines, Profile Wrapping Machines, Veneer Equipment, Material Handling Systems (Panel),Material Handling Systems (Solid Wood), Software & Process Control Systems, Stackers, Palletizers & Packaging Systems, Briquetting & Recovery Systems, Dust Collectors, Wood Waste Grinders, Cutting tools, Saw Blades, Cutterheads and Other Tooling for Woodworking machinery.


 The Forestry Industry in Russia represents 5% of total Russian Industrial output and employs 7% of the Russian workforce in Forestry Harvesting and the production of Wood relating and value-added wood related product industry’s . With 25% of the worlds Timber stocks Russia only supplies 2.5% of Wood value-added products something the Russian Government is now addressing by investing over € 15 billion euros in the Forestry and Woodworking technology and value-added industries over the next 5 years (2010/15). The main focus to improve the Woodworking technology sector will be to invest in modern equipment to improve production to supply there growing domestic demand and the export of value-added products. The Russian Government Ministry for Industry and Energy (MinPromEnergo) has put in place “Program for the development of woodworking and harvesting by 2015”, which also includes substantial investment in the development of board production and other components required for wooden housing. In 2009 there were only 48 particleboard production lines with total annual capacity of five million cubic meters. CeeIndustrial states that the current annual production only satisfies the local market and with the up surge in the Construction of Wooden houses this will need to be increased. Russia also wants to be a next exporter of OSB/ particleboard by 2015.

The Russian government is currently developing the “Program for the development of woodworking and harvesting by 2015”, including the development of board production of other components required for wooden housing. At the beginning of 2006, there were only 39 particleboard production lines with total annual capacity of four million cubic meters. This production is not competitive on world markets. Recently established facilities for production of fiberboard satisfy the local demand for this material. The anticipated increase in the demand of wooden houses, however, will stimulate the construction of new fiberboard production mills.
The VNIIDrev (All Russia Scientific and Research Institute for the Woodworking Industry), states that by 2011, the consumption of oriented strandboard (OSB) in Russia will increase to 700 000 cubic meters, while the domestic industry will be producing about 1.7 million cubic meters annually. The analysts of the Association of Commercial Enterprises make their estimates on the basis of current plywood production. Annual plywood consumption in Russia is 6100 000 cubic meters. As expected, the share of OSB will account for 15% of the plywood market (i.e. 165 000 cubic meters a year). These estimates are based on the Federal Mortgage Development Program. A large number of Russian citizens are expected to have access to bank financing in the near future. Hence, an increased demand for condominiums will stimulate the growth in the construction of inexpensive houses, based on the use of modern foreign technologies. Another important factor stimulating the development of OSB production in Russia is the availability of practically unlimited forestry resources. OSB production utilizes low quality timber. The average share of such timber, not currently used for pulp and paper production or woodworking, is 22.5% for hardwood and 45% for softwood in Russia. In 2010, five OSB mills were built Russia and in 2011 a further five are expected to be constructed in Russia. This will drive the demand for woodworking Technology and equipment.

One key area for growth in the Woodworking Technology market would be energy efficiency and efficient resource exploitation. The key drivers of innovation and capital investment are the technologies that enhance resource efficiency. Dr. Bernhard Dirr, Director of the German Woodworking Machinery Manufacturers' Association within the German Engineering Federation (VDMA), explains: "Resource efficiency is currently turning the entire wood working and processing industry on its head. The industry is not as energy-intensive as others might be, but its material costs make up a comparatively high proportion of overall costs. So while there's definitely a place on the agenda for low-energy woodworking and processing technologies, the main focus is on the efficient use of wood and hence on things like minimizing kerf and processing loss and maximizing wood waste utilization. In these and many other areas there is still much that can be done to improve resource efficiency - an important consideration given the rising cost of wood materials. The use of efficient machinery and production systems is thus a critical success factor in an industry characterized by spiraling prices for raw materials, energy and labor.

The conclusion to the Future of the Woodworking and Forestry industry in Russia is that All parties involved agreed that the use of the large wood resources in Russia should be done by own processing and the build-up of further saw and panel plants as well as further development of the secondary industry (furniture, floors, construction of houses, etc). The Woodworking technology industry increased by 69.8 percent in 2010 from the same period of the previous year in 2009 and with the investment into to the Woodworking technology industry the growth for the next 5 years will increase at a similar relate year on year.

Some Developments in the Russian market

EWD and Holtec Receive Orders from Siberia

Kraslesinvest from Krasnoyarsk (Siberia) the Russian state owned enterprise order a profiling line from the German sawmill supplier Esterer WD (EWD) . The associated plant is to be built Boguchany when its completed the sawline will have a cutting capacity of 800,000 m³ of logs. There, Pine, Larch and Spruce logs with diameters between 10 and 46 cm are to be cut in. The package, ordered from EWD, includes two profiling units able to produce up to eight side boards per log. Holtec has also announced recent orders in Russia but at this time we are waiting for further information on this

Metso
Södra - Pulp Mill Project in Russia
Södra Cell has been invited to participate in a feasibility study regarding a pulp mill project in Russia. Södra, the Russian bank VEB and Angara Paper have signed a Letter of Intent. Södras role in the project will be industrial partner and responsible for sales and marketing of future pulp production. The feasibility study concerns constructing a pulp mill with a capacity of 1.1 million ton softwood pulp per year. The project has cutting rights of 6 million cubic meter softwood per year in the Krasnojarsk area.
Positive outcome to Russian timber export duty issue

The timber export duty issue, a matter that has hampered Russian-Finnish forest industry cooperation, was resolved as part of WTO negotiations between Russia and the EU. “Russia's timber duty decision is a positive result from the perspective of the Finnish forest industry. According to the information available at the moment, effects of the duties will not focus on timber grades, which are imported into Finland, as heavily as before. Russian export duties on hardwood will decrease to a quarter of the current level. Duties on softwood will decrease by half", says Timo Jaatinen, Director General of the Finnish Forest Industries Federation.

The Finnish forest industry ha already adjusted its operations to reduced timber imports from Russia and relies on domestic raw materials to a very large extent. A recovery in Russian timber imports is now dependent on developments in forest industry exports and the cost competitiveness of both domestic and Russian timber.

The forest industry of Finland has so far invested over a billion euro into Russia. Its investments have targeted the sawmill and panel industries as well as the paperboard industry in particular.

Russia – Mondi plant modernized

Mondi Group confirmed that it has completed the final phase of modernising its Syktyvkar mill in Russia, following the commissioning of the recovery boiler and rebuilt container board machine this week. An earlier phase of the project completed during November 2008 saw 60 000 tonnes of uncoated wood free production delivered to the market. Construction of the project commenced in April 2008 and completion has been on schedule. The modernised mill not only enhances the Group's low cost position, but allows for additional volume of Uncoated Fine Paper and Containerboard to be supplied to the high growth domestic Russian market.


Mayr-Melnhof to Project Pellet Plant in Russia

Russia in place of Switzerland – Mayr-Melnhof continues its strategy of integrated production sites. Angelika Svoboda, spokesperson of the company, agreed upon media reports saying that the Mayr-Melnhof sawmill in Efimovskij would be upgraded by a pellet production. Investment amounts to € 8 Million. The project is not scheduled yet. The Efimovskij sawmill built in 2009 is to achieve its full capacity of 650,000 m³ in 2011 or 2012.

Stora Enso continues to expand in solid biofuels

Stora Enso is continuing to expand in solid biofuels by investing EUR 10 million in starting pellet production at Imavere Sawmill in Estonia. The pellet plant project will commence in the fourth quarter of 2010 and is expected to be completed in the fourth quarter of 2011.

The annual capacity of the plant will be 100 000 tonnes of pellets. The pellet production will be fully self-sufficient in raw material and will utilize by-products from the sawmill and further processing operations.

The annual capacity of Imavere Sawmill is 400 000 m3 of sawnwood, joinery components and glue-laminated beams. Stora Enso Wood Products already produces pellets at four sites in Sweden and Russia with total annual capacity 310 000 tonnes.

If you manufacture Forestry or Woodworking Technologny, equipment then CeeIndustrial.com if your effective and efficient route to find Partners and demand for you products and services in Russian and Central and Eastern Europe region.

We see high demand for :- Hugh potential for Manufactures of a wide range of Woodworking technology such as in Forestry technology for forest care and protection, construction and maintenance of forest roads and tracks, forestry data acquisition and processing, training and further education, conservation and recreation facilities in the forest, wood cropping and harvesting, safety and hygiene, first aid, vehicles for timber transport, articulated semi-trailers, accessories for forestry machinery and vehicles, timber processing, heating with timber, wood pelletizing, tree nurseries, round-timber management, equipment for measuring volume and weight, cropping services, round-timber logistics, wood trade, planting, care of young trees and timber stands, pruning technology. In the wood working machinery technology industry that solid demand for Boring Machines, Edgebanders, Panel Saws, Routers, Tenoners, Bandsaws, Boring Machines, Door and Window Manufacturing Equipment, Finger Jointing Equipment, Flooring Manufacturing Equipment, Gang Rip Saws, Moulders, Optimizing Rip and Cross Cut, Planers & Surfacers, Roughmill Systems, Routers, Scanners -- Vision Systems, Embossing Machines, Finishing Systems, Foiling Machines, Sanders, Shape & Sanding, Assembly Clamps -- Case, Door, Drawer & Frame, Clamp Carriers, Post Forming Equipment, Presses & Laminating Machines, Profile Wrapping Machines, Veneer Equipment, Material Handling Systems (Panel),Material Handling Systems (Solid Wood), Software & Process Control Systems, Stackers, Palletizers & Packaging Systems, Briquetting & Recovery Systems, Dust Collectors, Wood Waste Grinders, Cutting tools, Saw Blades, Cutterheads and Other Tooling for Woodworking machinery.

We look forward to you comments and more important help you develop your business in the  Russian and Central and Eastern Europe region.