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The Government of Karelia will act as general coordinator of the interaction between timber industry companies

On February 27, a cooperation agreement was signed between the Government of Karelia and three timber companies - Setles, Ladenso and Olonetsles - owned by Helsinki-based pulp and paper manufacturer Stora Enso Oyj.

The agreement was signed by the Head of the Republic Artur Parfenchikov, the CEO of Setles Andrey Plokhov, and the CEO of Ladenso and Olonetsles Vladislav Balandin. Also present at the meeting were Juha Taavila, Head of North European Operations at Stora Enso Wood Products, and Arto Lyykorpi, Head of Stora Enso Wood Supply Russia.

Andrey Plokhov explained that the lack of raw materials is the main problem for many sawmills and pulp and paper mills. Because of this the existing facilities are underloaded and do not operate at their full capacity. Therefore, the signed agreement stipulates that the Government of Karelia will help Stora Enso with establishing a sustainable supply of raw materials. Stora Enso, in turn, shall commit itself to developing production, improving working conditions, and fulfilling its tax obligations.

Artur Parfenchikov emphasized that "being a responsible corporate citizen, Stora Enso ensures that all the employees are paid timely and accurately; fulfills all its tax obligations to the Republic of Karelia and the district where it operates; and certifies all the products according to international standards."

Stora Enso has been operating in Karelia since 1995. Today its facilities form a large-capacity timber complex with an estimated felling rate of 650,000 cubic meters, capable of producing 130,000 cubic meters of sawn timber and 12,000 tons of fuel pellets a year. Stora Enso's commitments to social responsibility include helping local kindergartens, schools, and sports organizations.

Artur Parfenchikov said that Karelia's Government will coordinate the activities of forest industry companies in order to ensure integrated timber processing in Karelia and to establish effective cooperation between Stora Enso's plants and pulp mills using wood chips as the fiber source. One of the examples of such cooperation is Setles company, which has started supplying birch raw materials to the Lakhdenpokhya plywood mill. The next step is to provide raw materials for the RK-Grand's pulp mill, which has already signed a relevant agreement with Karelia's Government.

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Created: February 28, 2018. Last updated: February 28, 2018.
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