Association head: Timber sector expects stable and long-term policy
Margus Kohava, head of the Estonian Forest and Wood Industries Association, said that while he is not up to speed on the decision to close Stora Enso's Näpi Sawmill, the entire forestry and timber sector is struggling and expects from the government stable and long-term policy.
"There is a clear trend toward higher raw material and lower producer prices in the sector. There is major imbalance, which has put all wood processors under a lot of pressure," Kohava said.
The sector expects long-term and stable raw material policy from the government, Kohava remarked. "If only regarding State Forest Management Center (RMK) raw material contracts. There is a lot of back and forth today, which has further complicated an already difficult market situation," he said.
There has been speculation over slashing logging volumes for a long time where the two sides of the debate are after very different figures. Kohava said that it is this uncertainty that has amplified the difficult economic situation caused by the crisis.
"The most important thing is to make sure the Estonian government does not leave our entrepreneurs worse off than their competitors in neighboring states. We will be able to compete if we have a similar business environment," Kohava said.
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Editor: Marcus Turovski
