After becoming the biggest contender in sawmilling in both Europe and the Baltic states in less than 10 years, Stora Enso Timber continues to expand – most recently with the opening of a new sawmill in Nebolchi, Russia.
One reason for this bold growth is the availability of raw materials in the Baltics and Russia. Another is markets and customers – sawn goods and an increasing amount of further processed products serve the Baltic domestic markets as well as the European and North African wood products industry and trade.
When asked about the quality of sawn goods in the Baltics, Seppo Vainio, director of Stora Enso Timber‘s Baltic Production Group, said: “Our products can stand up to any comparison, and the traditional ‘east-west’ categorisation of our own products should no longer be apparent in the market.”
Mr Vainio describes production processes in the Baltics as flexible and customer focused. Further processing has been developed at virtually every mill in order to respond to customers’ expectations – of Stora Enso Timber’s Baltic sawmills only Paikuse and Launkalne are still without further processing capacity.
For example, Imavere sawmill in Estonia has a considerable standard sawn goods production facility and a component line, and a glulam beam unit is being constructed.
Customers have had a central role during the development of processes. In Europe, products are shipped mainly to the UK, Ireland, Germany and Spain. Thirty-five to forty per cent of products service the Baltic market, and some make their way to North African countries such as Algeria, Morocco and Egypt. New market areas have also been reached, such as the US and Australia.
More than one million of the company’s seven million m3 capacity is now produced in the Baltics. That, Mr Vainio said, leaves room for a range of products – components for the window, door and construction industry, and planed goods. Quality grading and technical quality of production are under development and the aim is to ensure homogeneous and common quality levels for all sawmills.
Mr Vainio said: “We focus on customer products, such as components – for instance the beam mill at Imavere sawmill will meet the demands of the Japanese market.”
Stora Enso also takes its responsibility for forest management seriously. As a large company it aims to demonstrate sustainable forestry by example, and is extending its traceability system into the Baltics and Russia. The system is based on contract clauses, the collection and registration of wood origin information and auditing. Viability of the system and the authenticity of origin information is checked by both internal and third party audits.
Stora Enso also supports sustainable forestry by co-operating with several stakeholders including national forest authorities, environmental organisations and local forest owners. For example, mapping of Estonia’s key biotapes was financed jointly by Sweden and Stora Enso.
“Stora Enso is the biggest single purchaser of saw logs in the Baltics. All wood is procured directly by Stora Enso, which ensures consistent quality and environmental consideration,” said Mr Vainio.
Industry in Estonia recovered quickly from the effects of the Russian economic crisis. In 2003, it produced 19.22% of the GDP and was growing at a rate of 4.5-6%. Wood processing’s share is about one quarter and it constitutes the second most important field of industry which has seen many investments since 1990.
Wood is valued in Estonia and Latvia, both of which still have considerable unused resources. In Lithuania, the state has set limits on the use of wood – just over half of the annual 12.6 million m3 of permissible logging is conducted.
Mr Vainio said: “Stora Enso Timber’s strategy is to grow in those areas where good raw material is available. Natural growth areas are the Baltic countries and Russia.”
Stora Enso Timber has invested in the Baltics and Russia considerably over the past couple of years. There are four sawmills – Imavere, Paikuse, Sauga and Näpi – and component mills at Viljandi and Imavere in Estonia. Launkalne sawmill in Latvia, built in 2002, concentrates on the European construction products market by complementing the company’s product range for timber frame construction. Alytus sawmill in Lithuania and two Russian sawmills support the product family.
Stora Enso Timber also has a marketing and distribution company, Puumerkki, based in Tallinn and Riga, which handles business in the Baltic countries themselves.
