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Russian imports of wood harvesting and processing equipment: Some background notes:

- According to different sources there are from 33 000 to 60 000 companies in Russia involved in maintaining, harvesting, processing and trading timber.

- As of 2011 Russia exports mostly logs and split logs probably the lowest possible value added wood products. In fact even such a relatively simple product as OSB is not produced in Russia and is imported from Europe and North America.

- At least 80% of machinery and equipment (harvesting and processing) is obsolete and needs replacing.

- Most Russian makers of wood machinery and equipment have long stopped producing. Whatever is still being made in Russia is not competitive with imports due to reliability issues and not being energy efficient.

Russian government has a Strategy for the development of wood harvesting and processing industry for the period till 2020. Its main goal is to replace imports of higher value added wood products with domestic production and start exporting those products.

Specifically, it aims to:

- re-construct and modernize existing sawmill facilities - develop new mechanical and chemical deeper processing facilities - develop facilities for high quality consumer products - paper towels, toilet paper, printing paper etc. - develop facilities for production of high quality packaging materials.

To implement any of the above they will require logging, sawmill and processing equipment, virtually none of which is produced in Russia. All of it will have to be imported. Other relevant developments:

1. Russia plans at least 25% of all new housing to be low-rise, wood-frame by 2020. Almost none of the modern wood construction materials are produced in Russia. Russian government plans to increase dwelling area to 30-35m2 per person, from current 21. At the same time they will demolish all obsolete dwellings and replace with new. Together these two strategies call for construction of 150-170m2 millions of dwellings annually (currently 60m2 millions). At 25% thats 32-37 million square meters of wood frames houses constructed per year. Developing capacity for production of factory-made wood housing is an explicit goal stated in the Strategy (meaning there will be state support and financing for such projects).

2. Paper and cardboard consumption is expected to increase by 2020 to 100 kg/person annually (47 currently). Fine coated paper and coated cardboard for food packaging is 95% imported as of 2012.

3. Improve ecological impact, specifically: - reduce water consumption in production of pulp from 88 to 70m3 per ton - decrease emissions from 12 to 6 kg per ton of product. This will obviously require latest energy efficient equipment, filtration etc.

Lets see whats being exported to Russia now: Drying kilns: Jartek Oy (Finland) to Sokolsky wood processing company: drying kiln for 882 000 euros WSValutec (Finland) to Svedwood: drying kiln for 719 723 euros Baschild Srl. (Italy) made supplied through Mahild Drying (Germany) to Ug-Metall: drying kiln for 329 000 euros.

Harvesting etc: Fae Group (Italy) to ZABT (Moscow): Primetech PT400 mulcher for 323 124 euros

Bandit Industries (US) to Lespromteh: model 5000 forestry mower for $382 295 Pulp and paper machinery: Couple of engineering (Voith, Copasa, PMT) companies shipping tens of millions worth of components for modernization of pulp mills Metso Paper (Finland) to Krasnokamsk Paper Factory: paper making equipment 236 478 euros Other woodworking equipment: Paul Maschinenfabrik (Germany) to PTS Hardwood: processing line for 1 376 212 Valon Kone Oy (Finland) to Rubcovsky LDK: 2 VK8062 debarker for 565 440 euros Sofit S.r.l. to Krasnoderevshik: door making line for 386 000 euros Globe Machine Manbufacturing (US) to Enisey Plywood plant: plywood equipment for $389 485 Dynamic Manufacturing (US) to Rusobalt: wood chipper for $77 692.

You get the idea tens of thousands of units of wood harvesting and working equipment are shipped to Russia every year. Are you interesting in selling to Russia, finding distributors or testing the market? Contact me: victor@exporttorussia.org We can do something as simple as compiling a list of Russian importers of equipment similar to yours and mail them an offer.

For associations representing multiple manufacturers we can put together a catalog and mail it to the same list. Or set up a website and promote it to those importers. Or invite them to a buyers mission to your country. Or do something else with this information to generate sales for you Im open to suggestions.

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