The development of the timber industry complex of the Far East will allow us to reach a new level of trade in the Asia-Pacific region

The development of the timber industry complex of the Far East will allow us to reach a new level of trade in the Asia-Pacific region

From September 11 and to September 13, the Eastern Economic Forum is traditionally taking place in Vladivostok

The Eastern Economic Forum has become a platform for discussion of key issues of the world economy, regional integration, development of new industries and technologies, as well as global challenges facing Russia and other countries of the world. The events of the Forum are traditionally held in the format of panel sessions, round tables, TV debates, business breakfasts and business dialogues.

On September 11, within the framework of the WEF-2018, the session “Timber industry complex of the Far East: increasing the economic returns of the industry” was held. The speakers of the industry session were: State Secretary – Deputy Minister of Industry and Trade of the Russian Federation Viktor Evtukhov, Vice President for Strategy and Business Development, President of the Holding RFP Konstantin Lashkevich, Minister of Trade and Industry of the Republic of India Suresh Prabhu, General Director of Asia Forest LLC Alexander Pudovkin. Representatives of large Russian and Asian companies, associations and regional authorities also took part in the discussion.

The forestry complex of the Far East has great potential. The proximity to the key markets of the countries of the Asia-Pacific region: Japan, China, South Korea – makes this region a strategic timber trade. In recent years, much has been done to “reformat” the region from a raw material model of harvesting and exporting roundwood to the production of finished products. Since 2010, there has been an increase in the production of timber products (lumber + 5%, veneer + 9%, fuel pellets + 2.5%, furniture + 8%). However, the percentage of roundwood exports from the total harvest in the Far Eastern region is still much higher than the national average.

“To solve this problem in the spring of 2018, the mechanism of export tariff quotas developed by the Ministry of Industry and Trade of Russia for round timber from species of wood that grow exclusively in the Far East (larch Dahurian, Ayan fir and white fir) began to operate. The size of the tariff quota is set at 4 million m3. The quota for the export of roundwood is distributed only between those enterprises that have established processing capacities, and also exported timber processing products. For such enterprises, the rate of export customs duty is to be reduced from 25% to 6.5%, “said Victor Yevtukhov, State Secretary and Deputy Minister of Industry and Trade of the Russian Federation.

The Ministry of Industry and Trade of Russia expects that such a mechanism will allow to redirect the flow of roundwood from export to the domestic market and load both existing and idle timber processing capacities with raw materials.

In general, starting from 2008, within the framework of the mechanism of priority investment projects, 7 projects have been built and put into operation with a total investment of about 27 billion rubles. (“Terneyles”, “Dallesprom” (capacity for veneer and sawn timber production), “Les Export”, “Amur Forest”, “Arkaim”, “Rimbunan Hidzhau MDF”, “Primorsklesprom”) allow to produce lumber in volume 1.0 million cubic meters, slabs – 290 thousand cubic meters, veneer – 0.6 million cubic meters, parquet – 1.7 million square meters. and which are capable of processing up to 7 million cubic meters. m of wood. In the implementation phase, there are five more projects to create processing capacities of 3 million cubic meters. m of wood and the volume of investments is about 16 billion rubles. (capacities for the production of sawn timber and fuel pellets will be introduced).

“The forest industry does not stand still. At all stages of production we use digital technologies: unmanned aerial vehicles for logging control, cloud technologies for dispatching data. Such parameters allow us to significantly improve the efficiency of work, “said President of the Holding RFP Konstantin Lashkevich.

The key direction of development, which will significantly improve the profitability of the forestry complex of the Far East, and utilize low-grade illiquid timber in the region, is the creation of pulp mills. Now work is under way to create conditions for the implementation of the project to build a pulp and paper mill in the Khabarovsk Territory.

The Ministry of Industry and Trade of Russia announced the initiative to expand the construction of timber houses in the region within the Far Eastern hectare, which will also contribute to the development of the timber industry complex and will increase the volume of deep timber processing in the Far East.

For the breakthrough development of the forest sector of the DFO, a proactive position of the administrations of the subjects, a constant dialogue with business, including small ones, and partners in the foreign market for joint development of the region is needed.

“The forest is the future oil of the world. The need to develop all areas of the industry is obvious. In the near future this will bring a powerful economic effect. We intend to strengthen cooperation with our Russian partnersin this sphere”, said Suresh Prabhu, Minister of Trade and Industry of the Republic of India.