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Economic development of the Republic of Karelia in 2001

General Information

Industry

    The Timber Industrial Complex

    The Mining Complex

    Industry

    The Agroindustrial Complex

Foreign Relations

Interregional Relations

Tourism

Investment Policy

State of the Material Production Branches
Timber Industrial Complex

The enterprises of the industry could poivide physical bulking in production though rates of growth of manufacture appeared to be below rates achieved in 2000. On the results of 2001 the index of physical volume of industrial production has made 103.2% (108,1% in 2000). However, decline in manufacture has taken place in ferrous metallurgy, mechanical engineering, and woodworking industries. At the same time, comparison of dynamics in manufacture on Karelia and on Russia shows, that delay of rates of growth in the industrial output is typical on the Russian Federation as a whole: the index of physical volume in the industry of Russia in 2001 has made 104.9%, whereas in 2000 it was 111.9%.

The timber industry complex (TIC) still has the leading place in the industry. Its share in the total amount of the production made on republic in 2001 has made 50% (56% in 2000). Half of all working in the industry is occupied at the enterprises of the timber industry complex. In the structure of the export of the republic the densities of production of the TIC makes more than 60%. At the same time, in 2001 the timber industry complex has provided only 15% of incomes for the republican budget, whereas in 2000 it was 23.3%. The enterprises of the timber industry complex have made production for the sum of 14.5 billion roubles at the index of physical volume equal to 101.7%. The profit has been received for the sum of 26 billion roubles, however the balanced profit has decreased by 4.1% to the level of 2000.

Unlike the previous year the greatest bulking of manufacture among the branches of the timber industry complex has been achieved in the logging industry. This was promoted, in particular, by the change of the approach for allocation of wood resources.

So, the sites of wood fund with annual norm of using in the volume of 6 million cubic meters were given for rent, 130 wood auctions were held where 370 thousand cubic meters at the auction price of one cubic meter of wood for 153.4 roubles and the general auction cost of 56.7 million roubles has been sold.

Use of calculated wood-cutting area (of the main using) has increased from 72% (in the view of the reserve of territories under national parks) in 2000 up to 74% in 2001.

On the results of work of the logging enterprises in 2001 the volume of wood hauling (on the large and average enterprises) has increased up to 5.3 million cubic meters or by 7% in comparison with 2000. As a whole in the logging industry the index of physical volume has made 105.8%.

Among the enterprises that have considerably increased the hauling volumes, there are the Open Company "Segezhales" (154%), Open Society "Lahdenpohsky Timber Industry Enterprise" (133%), Open Society "Chupinsky Timber Industry Enterprise" (132%), Open Society "Piaozersky Timber Industry Enterprise" (116%), Open Company "Dial" (120%), Joint-Stock Company "Shuyales" (116%).

The positive factor of work of the logging enterprises is their transition to assortment technology of timber cuttings. In 2001 42% of all volume of timber cuttings has been prepared according to this technology. The Open Society "Ladenso", Open Society "Kondopozhsky Timber Industry Enterprise" and Open Society "Volomsky Complex Timber Industry Enterprise" works completely according to the assortment technologies.

Within 2001 the decrease of the rests of the round forest products in the bottom warehouses of the enterprises was observed. If in the 1st quarter they made 567 thousand cubic meters, in the 1st half of the year - 490 thousand cubic meters, then on 01.01.2002 there was 244 thousand cubic meters.

At the same time, it was not possible to stabilize financial position of the logging enterprises.

The unstable situation has developed in the woodworking industry, physical volumes of manufacture in the branch have decreased by 3.3% in comparison with 2000. Reduction in demand for plank timber and the export prices, lack of own turnaround means for purchase of raw material at the enterprises have resulted in reduction of release of saw-timbers by 8%

The timber enterprises have lowered the volumes of manufacture of saw-timbers: Open Company "Interlesprom-XXI " (Open Company "Byelomorsky Saw-Woodworking Combine") - half as much, Open Company "Kondopozhsky Saw-Woodworking Plant" - by 30%, Open Society "Kemsky Saw-Woodworking Plant" - half as much, etc. Because of change of proprietors the Open Society "Kemsky Saw-Woodworking Plant" and the Open Company "Interlesprom-XXI" stood idle for more than 3 months.

Lahdenpohsky plywood combine, the branch of Open Company "Bumex" was successful in 2001. Manufacture of plywood in comparison with the level of 2000 has increased by 28% and has made 20.6 thousand cubic meters. The enterprise is engaged in modernisation of production, develops and increases volumes of bent-glued products.

April, 16, 2001 the factory of the Open Society "Karelia - Evroimeks RBC" for manufacturing resin-bonded chipboards has been put into operation. With start-up of this enterprise significant volumes of the low-grade and deciduous wood that earlier had not been used by the timber enterprises are realized now as initial raw material at plates manufacturing. On the results of the work 29.4 thousand cubic meters of resin-bonded chipboards on the total sum of 57 million roubles has been made within one year.

As a whole on the branch for 2001 the balanced losses in comparison with the similar period of the previous year have increased by 3.4 times. Unprofitability of the branch is related to falling of the world prices for saw-timbers, with the high degree of deterioration of the equipment, lack of means for its updating and reconstruction of manufacture, under exploitation of available capacities and, as consequence, the high cost price of the production.

In the pulp and paper industry the index of physical volumes in 2001 has made 100.6% to the level of 2000, manufacture of paper (including the kraft-liner) has increased by 2%. The profit received by the enterprises of the branch in 2001 has made 2360 million roubles, the balanced financial result was 2351 million roubles and has increased in comparison with 2000 by 4.6%.

The Open Society "Kondopoga" is purposefully engaged in perfection of the technological mode of manufacture in order to reduce the weight of square meter of the newprint. Evaluating the paper in tons the volumes of manufacture were reduced by 1% within one year, but if one evaluates the paper manufacture in sq.m. for 2001 its release has exceeded the level of 2000 by 13%. The Open Society "Segezhsky CPP" has worked stably in 2001: manufacture of paper (including the kraft-liner) has increased by 13%, of paper bags - by 9%. The administration of the Open Society "Segezhsky CPP" develops the program of modernization till 2005, one of the strategic tasks there is to increase the volume of manufacture of cellulose on cooking per one year up to 450 thousand tons (or 3 times as much to the level of 1999), development of new kinds of production - kraft-liner, micro-pleating kraft-paper.

The Open Society "CP Pitkyaranta" works stably, in 2001 there had been made 73.3 thousand tons of cellulose (101.2%). However, the adverse conjuncture of the world prices for production of the combine has resulted in essential decrease of the profit of the enterprise.

The Open Company "Severo-Ladozhsky Paper Combine "Liaskelia" has also increased the general manufacture of paper by 1%.

The Open Society "Suojarvskaya Kartontara" has worked below the line of its possibilities in the past year. On the results of its work only 12.1 thousand tons of cardboard or 78% to the level of 2000 had been manufactured within the year. With a view of financial improvement at the enterprise the plan of action has been produced and external supervision is introduced there till March, 2002.

Technical support
Created: April 2, 2002. Last updated: April 2, 2002.
© The Administration of the Head of the Republic of Karelia, 1998