Russia enjoys the largest forest stock and takes the third place in global round timber export. The country mainly targets at Southeast Asia and Europe. However, the forestry contribute to the Country economy does not match the potential.
We main goal of 2030 forestry strategy change is to improve the industry contribution into the GDP, increase the Russian forestry share on the global market, add extra value to every unit of processed timber as well as to improve the efficiency of forest use and development in forest regions.
Over the five or six years following the crises Russian Forestry has demonstrated a stable production rate growth in all major segments, i.e. average growth of timber – 4%, paper – 2%, and furniture – 9%. However, we shall note high import dependency in various finished product segments (46% for furniture, 19% for paper and cardboard, 15% for wood fiber slab and wood chipboard). Russian export mainly targets low-added value products: round timber, timber, cellulose, etc. However, Russian market consumes a great volume of highly recycled products with high import share: pure cellulose paper, groundwood paper, consumer cardboard. We will consider the import phase-out necessity based on the economic principles. We need to make sure the enterprises break even depending on their size, internal and external market state as well as expense curve.
By 2030 we expect the demand increase for softwood pulp by 10 million m3. Most part of the volume we attribute to bleached softwood pulp. Southeast Asia will consume 40% of the product, i.e. it will be an extremely attractive market. Rayon pulp is yet another prospect export segment as the demand will double within the next 15 years. However, we shall bear in mind the product will be targeted at export due to limited market in Russia.