15.07.2025, 14:13
Another Russian industry has reported a crisis
Source: OREANDA-NEWS
OREANDA-NEWS The Russian Association of Pulp and Paper Industry Organizations and Enterprises has asked Anton Alikhanov, head of the Ministry of Industry and Trade, to hold a meeting on the crisis in the industry. This is reported by Kommersant with reference to the letter of the organization.
According to the document, the timber industry is currently experiencing one of the most difficult moments in its history. Enterprises are becoming unprofitable, losing competitiveness, and in the second half of the year, if trends continue, they will be forced to stop production.
Last year, the volume of raw materials harvested fell by 13 percent against the background of the closure of a number of foreign markets, this year the situation in the pulp and paper industry worsened. The main reason was the strengthening of the ruble exchange rate while maintaining a high key rate and an increase in the income tax rate from 20 percent to 25 percent.
In addition to these factors, the industry has faced declining demand in the domestic market, falling prices, and the difficulty of operating in China, where business activity is declining due to the trade standoff with the United States. The timber industry suggests that the Ministry of Industry and Trade create an operational headquarters to monitor the situation and develop steps to normalize the situation in the industry.
ULK Group CEO Vladimir Butorin said that there is simply no market for products such as pellets, balance sheets and wood chips, and the cost of lumber is constantly falling. Segezha Group added that logistics is also becoming more expensive and the operational efficiency of assets is decreasing.
Earlier, Deputy head of the Ministry of Energy Dmitry Islamov admitted that the situation in the Russian coal industry continues to deteriorate, 51 enterprises have already been closed or are on the verge of closure.
According to the document, the timber industry is currently experiencing one of the most difficult moments in its history. Enterprises are becoming unprofitable, losing competitiveness, and in the second half of the year, if trends continue, they will be forced to stop production.
Last year, the volume of raw materials harvested fell by 13 percent against the background of the closure of a number of foreign markets, this year the situation in the pulp and paper industry worsened. The main reason was the strengthening of the ruble exchange rate while maintaining a high key rate and an increase in the income tax rate from 20 percent to 25 percent.
In addition to these factors, the industry has faced declining demand in the domestic market, falling prices, and the difficulty of operating in China, where business activity is declining due to the trade standoff with the United States. The timber industry suggests that the Ministry of Industry and Trade create an operational headquarters to monitor the situation and develop steps to normalize the situation in the industry.
ULK Group CEO Vladimir Butorin said that there is simply no market for products such as pellets, balance sheets and wood chips, and the cost of lumber is constantly falling. Segezha Group added that logistics is also becoming more expensive and the operational efficiency of assets is decreasing.
Earlier, Deputy head of the Ministry of Energy Dmitry Islamov admitted that the situation in the Russian coal industry continues to deteriorate, 51 enterprises have already been closed or are on the verge of closure.
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