In 2022 we planned and developed a strategy for the development of the forestry complex of the Sakhalin Region and attracting targeted investors to the regional Forestry Industry Complex (FIC)
On contract with the Administration of the Sakhalin Region, in addition to other tasks, we have carried out the following works:
- Scientific research work "Development of directions for the development of the forestry complex of the Sakhalin Region and business documentation (including Technical and Economic Justification for the project of deep wood processing for attracting investors)".
- Development of a Strategy for the development of the forestry complex of the Sakhalin Region and attracting targeted investors to the regional Forestry Industry Complex (FIC)
- Improvement of a master plan for the development of targeted forest resources for supplying the forestry cluster.
- Defining prospective products for the forestry complex of the Sakhalin Region.
- Scenario analysis of investment models in the forestry complex of the Sakhalin Region.
- Evolvement of business documentation for deep wood processing in the Sakhalin Region to attract investors for a narrow range of prospective products.
- Organization of effective communication with representatives of potential investors for a narrow range of prospective products.
Project of a Forest Processing Complex in Sakhalin Region
Sakhalin is in close proximity to three major regional markets: Japan, South Korea, and China. Japan serves as the nearest market for the sale of finished forest products, and it is advisable
to concentrate sales in this market as it offers premium prices
in the region. The Chinese and Korean markets are auxiliary
and are used for the sale of low-quality products.
"The project can be implemented in stages,
with a gradual increase in production capacity
and adaptation of local infrastructure.
The construction period for the main project facilities
is 1.2 to 2.0 years, excluding project and research work.
The anchor production complex that ensures further development is the sawmill production, based on milling
and sawing technology, and comprehensive processing
of waste into technological chips and wood fuel pellets."
The advantages of Sakhalin region
-
Sakhalin oblast has coniferous planned logging areas with a maximum allowable cut of 2.4 million cubic meters, with an exploitation rate
of approximately 10%, and with high-quality timber stands and their transportation accessibility. -
Sakhalin Oblast offers a wide range
of tax incentives for investment projects.
-
Sakhalin Oblast is located in close proximity to target markets, minimizing transportation costs for delivering products to these markets and giving it an advantage over competitors (especially from the USA and Canada). -
Sakhalin Oblast has developed energy
and transportation infrastructure, enabling the implementation of the considered investment project.
| Market Development Drivers The primary driver of regional market growth is the increasing consumption of all types of forest products in China. Currently, the consumption volume in China is significantly lower than in Russia, the Republic of Korea, and Japan. This is a catalyst for further growth in the consumption of forest products in China, which will create regional demand and price growth. The devaluation of the ruble allows industry exporters to generate increased profits. Russian forest product manufacturers are more resilient compared to their European and American competitors. The growth in consumption of wood fuel pellets is driven by Japan's decision to abandon nuclear energy after the Fukushima disaster. The growth in consumption of CLT panels in Japan is attributed to their. |
Investment Plan
-
2,497
CAP EX BILLIONS RUB
Logging Units
and Transportation
-
9,388
CAP EX BILLIONS RUB
Sawmill Production
-
1,107
CAP EX BILLIONS RU
Wood Fuel Pellet Production
-
5,040
CAP EX BILLIONS RUCross-Laminated Timber (CLT) Panel Production
- 9,535
CAP EX BILLIONS RUOriented Strand Board (OSB) Production
-
27,569
CAP EX BILLIONS RU
TOTAL Investments
-
25,071
CAP EX BILLIONS RU
TOTAL Non-Logging Units
