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Woodworking industry

The share of the woodworking industry in Belarus amounts to about 2% in the structure of the industrial production and includes a number of segments: production of sawmill materials, plywood, furniture, fabricated houses and wood construction details, production of matches. Enterprises of the woodworking industry are united by the “Bellesbumprom” concern which is a monopolist in timber harvesting and production of some products from it. The concern “Bellesbumprom” includes 60 enterprises, which account for about 70% of the processing of wood and approximately 45% of furniture production in the Republic of Belarus.

At the moment, almost all woodworking enterprises within the concern “Bellesbumprom” are joint stock companies. Moreover, the share of the state in their statutory funds range from 16% to 60%.

The largest woodworking enterprises of the Republic of Belarus are “Gomeldrev”, “Mostodrev”, “Ivatsevichidrev”, “Vitebskdrev”, “Pinskdrev”, “FanDok” and others.

Investment and projects

An example of cooperation of foreign investors with woodworking enterprises in Belarus is the project of the Austrian company Kronospan — one of the world’s largest manufacturers of wood products. The Investment Agreement of the Ministry of Economy of Belarus and Kronospan Holdings East Limited was signed in Frankfurt am Main within the framework of the Belarusian Investment Forum.

The woodworking industry with the estimated cost of 150 million Euro is being created on the basis of the government enterprise “Smorgon Aggregate Plant”. It is planned to produce five types of products – chipboards, laminated chipboards, MDF, OSB and floor panels. The production can reach its full capacity in about 10 years.

Over the next two years the Austrian holding Kronospan plans to invest about 170 million US dollars in the Belarusian woodworking industry. Apart from the construction of the plant in Smarhon’, the Austrian company intends to establish a production in Mahileū.

The Austrian group Egger also intends to build a modern woodworking industry in the Barysaū district, Minsk region. The new production will specialize in the production of chipboard and oriented strand board (OSB). According to preliminary estimates, the investment from the Austrian party will amount to 200 million Euro.

The expected investment projects in woodworking are the creation of joint ventures, which will work on raw materials from Belarusian forestry enterprises. At the moment, negotiations on the establishment of new joint ventures are being conducted with the Baltic countries, Scandinavian countries, Serbia, Germany and Poland.

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