Russias WTO entry will activate the production of biofuels — expert

Biofuels (pellets), it may become more attractive for Russian consumers, as from the entry into the WTO, Russia will have to gradually bring domestic gas prices in line with European, deputy director general for foreign economic activity of JSC "Sawmill-25" ( included in the "Titan") Dmitry Krylov.

Pellets (pellets, Eng. Pellets) — biofuels, derived from peat, wood waste and agricultural waste. Is a small cylindrical pellets. During the combustion of pellets release CO2 into the atmosphere is 50 times less education ash — 15-20 times less than coal.

"The change in pellet production in the country in the next few years will depend on the situation on the international market, where demand for this type of fuel is stimulated by government subsidies in programs to reduce harmful emissions and increasing the share of renewable fuels ( biomass) "- quoted Krylov press service of the Arkhangelsk Pulp and Paper Mill.

Pellets, according to experts, are not subject to export duties, and production capacity of wood pellets in Russia (over 1 million tonnes a year) many times the volume of consumption (200 thousand tonnes), thus joining the WTO will have an impact on this segment woodworking market.

"Import of pellets in any significant volume is also unlikely, in particular, because of the logistics costs — pellets manufactured abroad, the delivery to Russia will be made more locally. Moreover the possibility of Russian manufacturers to produce a competitive product can affect cost of raw materials — how it may change after reduction of export duties on timber, as well as growth in domestic energy prices, "- said Krylov.

In the domestic market is also likely to experience declines producers — small companies that do not have guaranteed access to raw materials, not of high quality products and could reduce transportation costs for regular shipments of large parties.

"In terms of lumber, then, as in the situation with pellets, export duties are not, so there are no additional benefits for the export of Russian companies will not receive. Not occur and further restrictions," — said Krylov.

In general, Russian plants exporting unprocessed timber, while the importation of products with high added value: parquet, laminated beams, THERMOWOOD, the expert said. Accession to the WTO, in his opinion, will not prevent the Russian producers continue to export timber, but perhaps an increase in imports can make the job of production with a deep level of processing.

"Probably the increased competition in the procurement of raw materials, especially in Karelia and Siberia, due to lower export duties on round timber. Increase if the price of raw materials, the possibility of closing inefficient, outdated facilities that are unable to reduce internal costs" — summed Krylov.

JSC "Sawmill-25" — the largest sawmill complex in the North-West of Russia. Included in the group of companies "Titan" — a general supplier of raw materials for JSC "Arkhangelsk PPM".

The company produces export lumber kiln dried, and wood chips and wood pellets. Specializes in the processing of wood of conifers. The annual production of lumber plant exceeds 350 thousand cubic meters. Annual turnover of over 65 million euros.

Like this post? Please share to your friends: