The world's largest plywood producer announced an underutilization of up to 80%

The largest plywood manufacturer, Sveza, a company from Alexei Mordashov's Severgroup, is underloaded due to the inability to EXPORT products. Earlier Mordashov said,

The production capacities of the world leader in the production of plywood, the Sveza company, are 60-80% underutilized, said Anatoly Frishman, general DIRECTOR of the company. He announced this during a speech at the Federation Council, where they discussed the impact of sanctions on the state of the timber industry, the company said in a statement received by RBC.

According to Frishman, the timber industry is in dire need of state support.

“And plywood production, especially, since our enterprises are underutilized by 60-80%. For example, in terms of reducing or even canceling checks on the fact of forced downtime through no fault of employers. Our main task is to find new orders and restore production volumes, so I would like to spend time on these tasks, and not on constant communication with regulatory authorities,” said Frishman.

Sveza is the world's largest producer of birch plywood, part of the Severgroup group of companies owned by Alexei Mordashov.

Plywood is used in the construction of skyscrapers and Olympic venues, the production of long-haul trailers, high-speed trains and LNG tankers, and furniture. Sveza owns the supplier LLC Sveza-Les and seven manufacturing plants in St. Petersburg, Kostroma, Vologda, Sverdlovsk and Tyumen regions, and the Perm Territory.

The company's share in the global plywood production market in 2019 was about 20%, the company supplied products to more than 80 countries.

According to him, in this situation, “it would be logical” to reduce tariffs for businesses, duties and trade barriers with friendly countries, as well as develop infrastructure projects, creating new niches for manufacturers, and provide for the purchase of building materials for the state reserve.

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Frishman also suggested extending the implementation of priority investment projects by “at least two years”, so that the companies involved in their implementation could review their financial models, reorient themselves to other equipment suppliers, and also find new sales markets. According to Sveza's estimates, more than 30,000 people work at Russian plywood mills.

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Earlier, Aleksey Mordashov, whose group of companies includes Sveza, said that the export of Sveza dropped sharply due to Western sanctions. According to him, the company also faced numerous checks in connection with sending employees on idle time. “We exported 80% of our products. We have to send people on layoffs with two-thirds [of their salary]. The prosecutor’s office has sent us 15 requests since the beginning of the year,” Mordashov said at the St. Petersburg International Economic Forum (SPIEF). According to him, the directors of the company were forced both to deal with "very acute" production problems and to give explanations to the prosecutor's office.

Mordashov suggested taking advantage of the "momentum of war" to act Business

The company then explained that in order to restore shipments, Sveza is actively looking for new markets and building new supply chains, but this takes time.

On the final day of SPIEF, Russian President Vladimir Putin instructed to cancel most of the scheduled inspections for businesses. According to him, it is necessary to check the enterprises, violations in the work of which can cause damage to the environment or human HEALTH.