Production volumes in Russia’s timber industry lagged behind the country’s average industrial growth rate during 2002, according to consultants.
Lesprom Industry Consulting’s research shows the industry’s production rose 2.4%, led by pulp and paper enterprises (4.6%), compared with the average 3.7% rate. A sharp decrease in logging (-6%) was due to bad weather conditions in the first and fourth quarters.
A decrease in the manufacture of sawn timber products such as parquet, windows and door frames resulted in a production index of 97.9%.
Timber exports increased by 4.9% (4.7% in 2001) but in general there has been a downturn in the sector’s profits caused by a rapid growth in material expenses.
A revision of state import and export customs rates and a new foreign currency policy aimed at strengthening exchange rates of the rouble may reduce timber exporters’ profits and lead them to concentrate on the home market.
