The Ministry of Industry and Trade of the Russian Federation held a discussion of the Forestry Development Strategy until 2030. Mr. Ilya Pachkai, Head of the Forestry Complex of the Development Corporation of Middle Ural, took part in this meeting summarizing the results of the implementation of the Strategy up today. In September 2017, the Strategy will be submitted to the Government of Russia.
The Strategy outlines the priority directions for the industry development. Key goals are to create the new pulp and paper manufacturing capacities, particularly, for OSB board production, which should grow in 254% by 2030. Development of the wooden house-building has also been set as a priority. Currently, the Ministry of Industry and Trade is actively working on revitalization of wooden construction, including multi-storey buildings - the regulatory documents and technical requirements will be updated and quotas for wooden housing construction in the social sphere will be established.
Wooden house-building based on the modern approach to wood processing is environmentally friendly and durable. Also in Russia, it is planned to develop the recycling of wood waste into biofuel - by 2030, the production of pellets and fuel briquettes is expected to increase by 531%. Today, the utilization of low-quality wood and one hundred percent processing is one of the key tasks in the framework of increasing the profitability and environmental friendliness of woodworking industries.
In Russia, there are lots of forest resources, which are now underutilized. By 2030, it is planned to significantly increase the competitiveness of the timber industry and the industry's share in GDP (today about 0.5%). Developing the Strategy the participants of the Expert Council are taking into account the capacities of the internal and external markets to consume the goods produced.
The key message of the new Strategy determines which products we need to produce tomorrow, in order to be competitive and cost-effective. In fact, therefore, we worked out this draft of the Strategy together with timber industry companies and associations, - commented Mr. Viktor Yevtukhov, State Secretary, Deputy Minister of Industry and Trade of the Russian Federation.
According to the Ministry of Industry and Trade of the Russian Federation, the forestry companies and associations such as Ilim, Segezha, Mondi, Russian Forestry Group, STOD, Sveza, Russia forest products Group, Association of Wooden House Building, Association of Furniture and Board Industry, as well as the leading consulting companies (BCG, Strategy Partners Group, McKinsey, Ernst and Young) took part in discussion on the Strategy.
Sverdlovsk Region is considered to be one of the most promising regions for the development of the LPK products.
The Urals ranked third by the attractiveness of the forestry complex after the regions of Siberia and the Far East which originally possess more wood resources. Nevertheless, Sverdlovsk region is an absolute leader in the ratio of resources, the volume of which is great, and the quality of the logistics infrastructure that enables the forest to be harvested. In general, one of the main problems of the complex is the inaccessibility of most of the raw materials due to the underdevelopment of the transport infrastructure and natural barriers, for example, large rivers. In Sverdlovsk region, with its developed industry, there is an extensive network of roads and railways, including year-round forest roads and a network of narrow-gauge railway tracks, which makes the forest accessible for the manufacturer and allows to quickly organize harvesting and removal. In attracting investments into the forestry complex of the region, we look into priority and demanded areas, - Ilya Pachkai noted.
In the sphere of board production and wooden housing construction, a large producer will soon come to the regional market - STOD, - national leader in the segment of OSB boards and glued LVL lumber, it will build two factories in Sverdlovsk region.