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June 17, 2019

Russian sawmilling industry- Factors influencing investments and business outlook

Russian sawmilling industry- Factors influencing investments and business outlook

The Russian sawmilling industry is characterized by fragmentation, a division between large export-oriented companies and smaller companies relying on the domestic market, labour intensity, and advantages in stumpage and labour costs. However, the industry is facing serious pressure brought on by inflation and other factors driving up the prices of delivered logs, and the necessity to invest into infrastructure and new equipment to maintain competitiveness.

The Russian Sawmilling Industry at a Glance

Russian sawnwood production has nearly doubled since 2000.

The overall production level and industry development is heavily driven by exports. However, both production and domestic demand for sawn softwood is expected to be at a somewhat higher level than the official statistics indicate.

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