Forest export keeps increasing

RIGA - The first quarter has shown an increase of Latvian export
volumes in forestry production, reaching a total value of 127 million
lats ($76 million), which is 17.5 percent more than for the same
period last year.

"If you look at the different years, we have had years where we have
had a 20 percent increase in forestry production. I am not surprised
at these numbers," Arvids Ozols, undersecretary at the Ministry of
Agriculture, said.

George Hedlund, marketing manager for Wilhelmsen terminals, said
Latvia has found new markets in southeast Asia, the foremost in Japan.

"Also, every six months a new saw-mill, with Western standards and
know-how, is added in Latvia," Hedlund said.

Export of timber leveled at 110 million lats, an increase of 17.8
percent, compared to the first quarter in 1999.

"The major exporters had a lot of cut timber in stock for the first
quarter. The numbers for the second quarter will show a decrease
because of the British pound rate," Dietrik Wehrmacher, president of
anglo/irish timber, said.

Export of hardboard is still declining with export for 484,000 lats,
as well as plywood - 8.24 million lats and chipboard - 1.42 million
lats. Export volumes in all dropped by 24.3 percent, 27.6 percent and
5.9 percent respectively. There are very few factories in Latvia
producing these products.

Cellulose and recycled pulp have been exported for 276,000 lats or
111.2 percent more than for the same period in 1999.

"Cellulose and recycled pulp businesses have no real competition in
Latvia," Ozols said.

Kent Dalentoft, working for Swedish forest products company V.S.A.B.
in Latvia, said new saw-mills are sources of chips from sawing up
logs.

" We don't have any competition in this field, so I think we will
have a 100 percent increase this year. Nobody uses chip wood in
Latvia. We export everything to the big companies in Sweden and
Norway - companies who make paper," Dalentoft said.