Russian timber industry: key trends

Modernization of production facilities, staff shortage and export orientation are among the main trends in the Russian timber industry.

Russia accounts for about 1/5 of all forests in the world - as of 2024, the area of forest plantations in the country is 1,188.3 million hectares. In turn, the timber industry occupies an important place in the Russian economy with annual output of more than 2.8 trillion rubles.

Main forest regions. Major industry players

24 regions of the Russian Federation are more than 50% covered with forests. In September 2023, the top three in terms of the area occupied by forests, as reported by the Federal Forestry Agency, were the Irkutsk Region (82.2%), the Primorsky Territory (77.8%) and the Kostroma Region (73.3%). Timber harvesting and wood processing production facilities are usually located close to logging areas, so the main timber processing enterprises are distributed rather unevenly across the country.

The key regions of the Russian timber industry include the North-West and Siberia, in particular the Irkutsk Oblast and Krasnoyarsk Krai. The regions of the North-West (Karelia, Komi, Vologda, Arkhangelsk Oblasts, etc.) are interesting for timber producers not only for their natural riches, but also for their developed logistics and transportation infrastructure.

More than 43 thousand enterprises are currently operating in the timber industry. The 50 largest of them account for more than **1 trillion rubles ** of revenue. As for the top 10 companies in the timber industry, it remains virtually unchanged over time. According to the Forest Industry Association, as of July 2023, the list of leading companies includes: Ilim Group, Segezha Group, Mondi Russia, Kronospan, APPM, Sveza Group, Svetogorsk Pulp and Paper Mill, Titan Group, SFT Group, Egger Russia, ULK Group, Hayat Kimya Russia and Vologda Timber Producers Group.

Timber industry development trends

For more than 10 years there has been an active technologization of the timber industry. In many respects the process is stimulated by the shortage of personnel. According to Yuri Arkhipov, Development Director of Altaylestekhmash, the lack of specialists has been one of the main problems of Russian wood processors for the last 3-4 years. Active introduction of innovations and new solutions is also noted by other industry experts.

"The most important thing that is happening in the timber processing industry today is modernization of equipment. In addition, the depth of raw material processing has recently increased, additional jobs have been created, and wood processing conversion has been increased. In general, the industry is emphasizing the growth of quality of manufactured products “, - shared his opinion Dmitry Yakubovsky, Head of Wood business unit of Technonikol.

Also, one of the main trends in the timber industry, which to a lesser extent, but still persists to this day, is export orientation. Softwood lumber, plywood, paper and cardboard, wood boards and other products of the timber industry are exported. Among the products, more than half of whose volumes are sold to other countries are plywood (71%) and softwood lumber products (68%). According to the results of 2022 and 2023, China became the main buyer of Russian timber products. It accounted for 98% of lumber purchases in the amount of 13 million cubic meters, although in 2021 this figure did not exceed 76%. The second place in terms of imports was taken by Uzbekistan (more than 2 million cubic meters), the third place was taken by Kazakhstan (926 thousand cubic meters).

At the end of last year 51 countries purchased Russian lumber products. At the same time, according to the Federal Customs Service, Russia's exports of timber products decreased in 2023 compared to 2022. Thus, last year it exported $9.9 billion worth of wood and wood products and pulp and paper products. Compared to $14 billion in 2022, the reduction amounted to 29.7%.

From January to July 2024, Russia exported 13 million cubic meters of sawn timber and roundwood. More than half (7.4 million cubic meters) of the production went to China. Uzbekistan (1.1 million cubic meters) and Kazakhstan (481.4 thousand cubic meters) took the second and third places, as well as last year. The National Rating Agency forecasts sawn timber exports at the level of 17.5 million cubic meters by the end of 2024 .

Furniture Industry in the Leaders of the Timber Industry

One of the key segments is the furniture industry, which manages to demonstrate growth even in the current difficult conditions. Despite a 10% decline in the first two months of 2023, furniture production in Russia grew by 20.7% year-on-year. The rise in furniture production was followed by an increase in production of chipboard and fiberboard - by 6.7% and 11.3%, respectively. Positive results compared to 2022 were also recorded in the production of doors (+7.1%) and wooden boxes (+6.7%). However, there was also a deterioration in the performance of individual products in the segment - the production of wooden windows decreased by 19.2%.

According to the results of Q1 2024, 17.6 million units of furniture were produced - 24% more than in the same period last year. In value terms, production volume increased by 27% to 116.6 billion rubles. According to the results of the year, as reported in AMDPR, Russia may produce 73.7 million units of furniture, which will amount to 509.7 billion rubles in value terms.

Equipment and machines for woodworking and furniture production at Woodex 2025

Woodex is an annual International exhibition of equipment, materials and components for woodworking and furniture industry. Woodex is the main platform in Russia for demonstration of equipment for woodworking and furniture production, search for new customers and business partners. In 2025 the exhibition will be held for the 19th time.

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