world news - 30.08.2004
Finnish timber sector faces raw timber shortage
Finnish timber industry companies may significantly decline production if the government fails to take action on the increase of forestries and to simplify timber imports from Russia, Reuters quoting the Finnish Association of Timber Enterprises reported.
In 2003 Finnish timber processing companies, including the world's largest firms, accounted for 25% of Finnish exports. The companies provide jobs for 50 thousand citizens of Scandinavian coutnries where the rate of unemployment had been running high.
About 20% of timber used by Finnish sawmills and paper enterprises is imported from Russia.
'Finland requires own timber industry and economy' head of the Finnish Association of Timber Enterprises Yuko Yakkola said in his address delivered during the Nordea timber industry seminar. 'The practice shows that Finland does not control the operation of timber enterprises and the companies will decline production soon' he added.
Among Finnish major timber industry companies are one of the world's largest paper and cardboard manufacturer Stora Enso, the largest magazine paper producer UPM-Kymenne and one of the largest quality paper manufacturers – M-real.
According to Yakkola, about to resign from his post as CEO of M-real, Finland should take action against the new regulations imposed by the EU, that complicate timber imports.
'New regulations imposed by the EU threaten our imports from Russia. If there the bureaucratic machine grows and the expenses rise considerably, we may soon not be able to afford the imports. While certain 'forces' in Russia intends to reduce or even stop timber exports' Yuko Yakkola told Reuters.
'If the supplies stop at once, this will have a dramatic effect on all of ous' he added.
Lesprom
See also:
- — World pulp stores increased 10% in July 2004
- — Sawn hardwood production in the UNECE region increased by 0.9% to just over 45 million m3 in 2003, compared with the previous year.
- — The privatization of Russian largest timber enterprises is not advisable: Federal Agency on Timber Sector
- — European consumers reduced pulp stores 5% in July 2004
- — UAE leads in mid-east furniture business
