Issue N5

The forestry complex is an aggregate of natural resources, people involved, production means located in forests and a system of raw material procurement and sales of forest products.

FORESTRY COMPLEX - A SINGLE STRUCTURE

Half of the territory of the Nizhny Novgorod province falls on forests (51%). Unfortunately for decades this industry was not given proper attention. In the second half of 1996 the new province administration took a decision to set up a specialised division in charge of the forestry in the province. This administration unit was created within the province department of the economy and forecasting, since exactly in this structure it is possible to tackle comprehensively many questions. If before the forestry department was in charge only of forestry issues, the new administration became “a guardian” of firms involved not only in forestry but in the forestry-chemical and wood processing industries.

The disintegration of the Soviet Union and a resulted loss of partner links with the former republics which used to be the basic consumers of the forestry products, created a problem of new sales markets. Good business links have been developed recently with the Ministry of Trade and Economy of Finland and with some local companies. The visitors from Roy Henry, a major British forest trading company, Veisroc, a French company, and Dgefit from Italy showed their interest in co-operation. Theoretically it can be said that the forestry complex includes two dependant “parts” - forestry and forest industry. The success of each “part” directly depends on successful partnerships. In addition, the forestries and wood processing firms are often basic industries in their areas and they equally affect the local population, employment level and infrastructure development.

The links with foreign partners, which underpin the whole complex, are essential for both of its “parts”.

In 1996 our province was supplied with the most advanced timber production Harvester complex and two Forwarder complexes successfully applied in the Sokolsky and Kavernisky districts. Our labour was trained to operate this equipment by Finnish technicians and they made a conclusion that our workers operate this equipment in a most effective manner. In addition, our personnel was trained in Finland (within this project) to apply saving techniques of timber production. Back at home the former trainees became trainers. Currently an experimental area to test these saving techniques is developed in the Semenovo district.

The timber processing firms have also achieved some progress in their operation. To-day they are involved in production of lumber, furniture, various types of containers (obviously they “give” round timber) - in total over 100 product items. Any “forest” product can be manufactured - for agriculture, machine building industries etc.

If the specifications and drawings are available, the firms can go ahead with the production. Even though the firms are equipped with the machinery which is far from being the best( many machine tools and equipment are 20 years old ), the ways to provide a good quality are found. The cutting elements are replaced, other types of modernisation are carried out. Four of our firms have been recently assigned by the governor to take part in the programme of re-structuring of industrial complexes. At present two of them are positively fit for it: AO Pizhma and AO Syavsky Lespromkhoz.

The protection of forests from fire is a vital and complicated question. This summer as before the large forest areas were on fire. It is a devastating disaster ( not only with us but everywhere in the world ) - burning forests and peat beds. To fight these fires is extremely complicated. We have to involve forest guards, aircraft and in exceptional cases the units of the Ministry of Emergency Situations. Billions of roubles are spent. But how much timber is destroyed ! The situation is aggravating because the fire fighting facilities have not been modernised for a long time. We are short of fire engines ! The scorched areas change drastically the hole structure of soil and plants. The burnt forests are very difficult to restore.

But forest restoration is carried out not only because of “non-standard situations”, but following the plan as well. The felling decreased over two times and annually 7 000 - 8 000 hectares of forest are restored in our province. The seed developing station makes available planting material grown from good quality and even from elite seeds.

A special attention is paid to staff development. New specialists are trained in Vetluga and Krasniyabaky forestry vocational schools, the academy of agriculture run a forestry faculty. But our task is also to upgrade the knowledge of the management staff, to help them to feel free in new economic environment. To this end a range of seminars on effective managing skills are run and will be run by the best national and foreign experts targeted on the managers of the forest committee. We have all to learn to work effectively in the new environment.

A year passed since the forest administration was created. The main achievement that was made by to-day is the integration of separate firms in one whole, in a single complex. The real steps to improve the life of people in forest settlements. The development of partnership spirit among the directors of forestries and timber processing firms. The foreign economic links are widening, they help to recover the forest complex from the frustration.

There are lots of projects ahead, and programmes too. We feel supported by the local authorities. And therefore we hope that our “forest folk” will be the best well-off people as their colleagues in the rest of the world and therefore we will be able to preserve and to add to our forest wealth of our province, since we are responsible for it before the next generations to come.

Vladimir Parakhin,
Deputy department director of the economy and forecasting,
Chief of the forest economy complex administration.

Issue N5 | Nizhny Novgorod Business Encyclopedia Information-Analytical Centre

Parsek
Nizhny Novgorod
1998