Key trends in forestry industry: development of new areas of deep processing

We've compiled ten key trends that have impacted the forestry industry over the past decade and will continue to shape it in the coming years. The fifth trend on our list is the development of new areas of deep processing.

Over the past decade in Russia, production related to advanced wood processing has been developed or created from scratch. The introduction of new processing capacities is one of the main trends in the development of the timber industry for the next five years.

  • The first Russian enterprise for the production of OSB boards appeared in 2012, and already at the end of 2016, the STOD company (Tver region) launched the largest OSB production in the Russian Federation - the Talion Arbor plant with a capacity of 500,000 m3 per year. In 2023, the Basis company (a member of the Russian Forest association) presented a priority investment project - the creation of a new production facility for the production of OSB boards, lumber and pellets in Lesosibirsk, Krasnoyarsk Territory (the total investment amount will be 8.5 billion rubles).
  • The production of CLT panels - cross-glued wooden panels - has also become a new direction. The first large-scale CLT plant in 2021 was opened by the Segezha Group timber industry group of companies - the Sokol CLT plant in the Vologda region. In April 2023, the Ministry of Industry and Trade of the Russian Federation, Segezha Group, the Vologda Region and the Sokolsky Municipal District signed a special investment contract - SPIC 2.0. This is the first such contract both for the holding and for the Vologda region, within the framework of which large-scale industrial production of CLT panels is being implemented.
  • The most rapid growth for 2015–2022. in Russia the production of plywood (on average 15.1% per year) and packaging materials (6.5%) demonstrated. The coronavirus pandemic has contributed to increased demand for packaging materials, triggering an increase in the volume of online orders. In addition, business demand for environmentally friendly packaging made from paper and cardboard has increased.
  • The trend of the last five years has been the use of biotechnology for the development of deep wood processing. This includes, in particular, the production of new types of fibers, filters, new types of paper and cardboard, and hygiene products based on cellulose and wood pulp produced without the use of chlorine. We write in detail about this direction in our section #scientificnewsLPK.

According to analysts, timber processing in Russia in 2022–2027. About 1 trillion rubles will be invested. This is already producing tangible results: for example, according to expert estimates, the average annual growth in added value of timber industry products over the past three years is 5.2%.