Denis Manturov – Minister of Industry and Trade – says Russian Ministry of Trade plans to achieve 50% increase of forest industry contribution to GDP by 2030. However, he believes “we’ve started moving ahead about ten years ago by creating investment project portfolio”. “We have completed 29 of them and 94 are in progress. This is really a large-scale activity with 300+ billion RUR investment”, - Denis comments.
Mr. Vladimir Putin – Russian President – approved a set of instructions on forest use and protection as well timber turnover. The Control Directorate verified the instructions and all of them addressed to the Government.
Russian Forestry development represents the overall country economic development and follows the current macro-economic changes. The Forestry is a multi-dimensional economic system therefore the macro economy has different affect on one and the same industries. We may attribute this to significant difference in target sale markets, business processes, business scope, and regional specifics of forestry enterprises. However, we may identify some key factors that will affect the forestry investment opportunity for the coming years. This forestry investment forecast is prepared by National Forestry Agency for Development and Investments (upon LesInvestInform site request).More
Forestry today is one of the most promising directions for Tyumen Region economy development. Forest cover over 11 million hectares of land. The region demonstrates versatile industry forest usage ranging from timber harvesting to high-value product manufacturing. We discussed the Tyumen Region Forestry and investment project protentional with the Tyumen Region Forestry Department Head, Vladimir Artanovskiy.
Vladimir, people tend to believe that forestry is not the best area for making money due to production facilities low profitability. Do you agree with the statement?
I wouldn’t say that many people share this thought. We’ve already adopted a nice tradition in our forum and conduct annual “Technologies. Territories. Personnel.” Tyumen Investment Forum. Every year we register interest to the forest business. In 2016 10+ forestry investors arrived to our region. We discussed and reviewed a number of projects ranging from school furniture production to cellulose and timber processing facilities. We even had projects related to bioenergy business. Oversimplified forest harvesting companies – i.e. following the cut a tree and sell timber model – may not report a continuous financial stability and high profitability values. However, Tyumen Plywood Manufacturing Facility is a large and steadily developing production facility. Moreover, the facility annually increases its production capacity. Furthermore, the facility currently exports 75% of plywood. Both M&S business may run smoothly with the right approach. High-value wood products is mandatory in our daily life. This clearly means constant demand and steady market. In Tyumen we promote wood recycling within the region and do hope to achieve 100% recycling rate.
You’ve mentioned the M&S business. Forestry is challenging field that requires specific skills and technology. If we set various SMB achievements aside, what are the main challenges or problems that slow down the active development of the business?
First, we are trying to make Forestry industry transparent. It shall be clear to SMB. For instance, in 2015 Forestry Department, Economy Department, and Municipalities Development Council already included the Forestry development programs into their roadmaps. In its turn, the Tyumen Region Investment Agent Fund developed six typical business project with investment amount from 500,000 to 10,000,000 RUR. Any entrepreneur may use the fund. The entrepreneur will not have to waste any time on studies and calculations but will be able to get all the answers from these projects and select the most appropriate field.More
Regions of russia
Потенциал российского рынка
22% world forest stock
28 trillion USD – Russian forest fund value
2.5% - Russian share in global timber trade
69% of Russia is forest
Average annual forestry industry growth is 10%
State offers financing and subsidies to forestry companies and organizations
123 priority investment projects with total value of $8+ billion.
14-15.03.2017 – “Spring Biofuel Congress” - Annual event in Saint-Petersburg. A largest industry event for all Biofuel market participants. The Congress gathers together leading industry experts, entrepreneurs, investors, equipment suppliers, buyers and sellers of wood pellets and briquettes as well as other biofuel types.
4-7.04.2017 – MosBuild/WorldBuild Moscow - the Russia’s largest exhibition of construction and finish materials. The event is part of WorldBuild international construction and finish material exhibition network. The network includes over 20 exhibitions worldwide showcasing the prospective markets for construction and finish products.
1-4.06.2017 – “TECHNODREV Russian Far East” is the only forestry exhibition project in Russian Far East and Trans-Baikal region. The annual event unites the experts in forestry, wood processing, and furniture from different Russian regions and other countries.
5-7.09.2017 – “EXPODREV” exhibition in Krasnoyarsk. The event presents an efficient platform to demonstrate the equipment samples for wood harvesting, processing, and furniture industry.. The exhibition creates favorable conditions to market edge-cutting innovations in forestry technology, equipment and tools.
19-22.09.2017 – “Lesprom-Ural” International Exhibition in Yekaterinburg. The annual exhibition presents forestry and wood processing industry machinery, equipment, and technology.
3-4.10.2017 – Saint-Petersburg Forestry Forum is Russian largest project gathering together experts, politicians, entrepreneurs, economists, scientists, and managers.
14-17.11.2017 – Woodex Moscow 2017 - International Exhibition of forest harvesting machinery, equipment, and technologies for wood processing and furniture manufacturing.
Fall 2018 - World “Lesdrevmash-2018” Exhibition: machinery, equipment, and technologies for timber harvesting, processing, and furniture industry.