Machine tools and machinery for the timber industry: leasing, parallel imports or Russian production?

The mass exit of foreign equipment manufacturers has hit many industries hard, including the timber industry. Industry representatives are coping with the new realities in different ways. According to experts, leasing, parallel imports and Russian production are among the main solutions. Each option has its own advantages and disadvantages.

The forestry complex uses several large classes of equipment: logging machines, processing facilities, logging equipment. At the same time, the market for logging machines and processing equipment mainly used imported equipment: the share of domestic manufacturers is minimal here. In 2022, manufacturers of equipment and suppliers of consumables from China and Belarus appeared on our market.

In the forestry equipment segment, the share of Russian and Belarusian suppliers was initially higher, so additional opportunities opened up for such manufacturers in 2022.

Here are the main measures that are in place to support the domestic machine and machine tool industry:

• In accordance with Decree of the Government of the Russian Federation No. 895, equipment, analogues of which are not produced in the Russian Federation, is imported without paying VAT, including for the timber industry.
• For the production of less complex spare parts, the Agency for Technological Development (ATP) opened a program within the framework of Decree of the Government of the Russian Federation No. 208 on "reverse engineering". Thus, an enterprise experiencing problems with the supply of imported parts can apply to the Asia-Pacific Region: an accredited engineering center will conduct a study, prepare design and technological documentation and find a manufacturer who will undertake the production of the necessary components and spare parts. In 2022, such work was free of charge, and in 2023 it is carried out on the basis of co-financing: 80% - state subsidies, 20% - customer funds.
• For more complex components, assemblies or equipment, a subsidy has been working for several years to compensate for part of the costs and conduct R&D (Decree of the Government of the Russian Federation No. 1649). Compensation can be up to 70% of the costs.

The authorities are ready to respond to the needs of the industry and develop other support measures, but for this, small and medium-sized businesses must actively express their interests. Such a dialogue is possible, among other things, within the perimeter of industry and business associations.