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Investment research

Russian regions’ forestry: strategy of development

In 2007, the rate of relative growth of wood and paper production in Russia considerably increased and made 5% (in 2006 – 2%). Though, this growth is anyhow lower than other processing industry branch indexes show. As a result, lumber industry provides approximately 1% of Russia GDP production and about 4% of industrial output general volume only.

Forest sector requires significant investments raising. And in proportion to branch work dynamic improvement it is necessary to create as many as possible variants for harvested wood processing at engineering capacities in regions of Russia. And this multiplicity of production scenarios must have a conceptual base.
 
Region administrations must have a clear notion of economical state of timber cutting and wood processing enterprises and their long term plans. Only in this case it is possible to control a situation in a timber processing industry and to have a possibility to improve it for the better.
 
A strategy is a system of coordinated actions of the state and business, the centre and regions and can comprise questions of territorial placement of logging and processing capacities, branch restructuring and technical updating, forest saving and restoration, solving of occupation problems and staff training, a custom-tariff policy in interests of the branch.
Particularly in the beginning of September, 2006 Development concept of timber-processing industry in the Irkutsk region up to 2015, elaborated with participation of JSC “PIC Consulting Company”, was offered for airing.
 
The given document set main development directions of Angara region for next years and also detected main problems of Irkutsk region forestry and defined their solving ways.