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 Russian wood processors are starting to increase production
[Sep 22,  2023]


According to information released on the eve of September in the "Regional Economy: Russian State Bank Review", the volume of wood processing products has increased in the Northwest and Siberia regions due to improved logistics and increased domestic demand.

This is partly due to subsidies reducing the transportation costs of transporting timber to Asia by rail and sea, allowing exporters to expand eastward transportation.

At the same time, the report points out that domestic demand for wood products is supported by the real estate market and furniture production. One of the trading companies significantly exceeded last year's sales of cabinet furniture in 2023.

According to the portal website Kirov Business News, a wood processing factory in the Kirov region has started recruiting employees in order to resume two shifts: the increase in production requires more personnel to participate.

Enterprises that previously belonged to foreign owners and were idle are resuming operations. In the Leningrad region, the first batch of furniture samples under the company's new brand were produced at a popular European manufacturer's former factory.

A survey shows that wood processing companies in the northwest region expect an increase in demand for their products in the near future.

The report mentions that in July 2023, the production of particle board, plywood, and wood in Siberia increased, and a train carrying 62 40 foot long wood containers departed from there for the first time to Asia. Previously, the factory's products were exported as trains consisting of 6-10 containers. The manufacturer has modernized the loading dock and plans to regularly dispatch complete trains.

This is one of the largest enterprises in the Priangarsky LPK Krasnoyarsk Border Region and has now become a part of the Segezha Group. In August, the first container train on the Karabula Post Baikalsk Qingdao (China) route left the container terminal. The total amount of wood received by the buyer is 3000 cubic meters, and the transportation time does not exceed 7 days. The company plans to transport approximately five container trains on this route every month.