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Made in China: Russia’s Timber Giants Big Pivot After Sanctions

Russian manufacturers are now turning to 3D printing and computer-aided design (CAD) to improve parts that are no longer available.


Mon 28 Oct 24

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Beijing is cashing in on the huge volumes of Russian plant and equipment that urgently need refurbishment and upgrade with the country’s timber and paper giants turning eastward in response to Western Sanctions, which continue to leave huge holes in its timber and paper supply chains.

And where Russian companies can no longer access parts via Chinese suppliers, they are now reverse engineering plant and equipment refurbishments in-house, using 3D printing and computer-aided design (CAD) to replicate and improve parts that are no longer available.

Russia was the EU’s fifth largest trading partner in 2021, exporting more than $3 billion worth of timber to the bloc. (Photo Credit: Stock Illustration ID: 719426440)
Russia was the EU’s fifth largest trading partner in 2021, exporting more than $3 billion worth of timber to the bloc. That market has now been replaced by China and a series of “friendly” Eurasian countries including Belarus, China, South Korea and the Middle East. (Photo Credit: Stock Illustration ID: 719426440)

This includes the Segezha Group, Russia’s largest pulp and paper producer. Up until the 2022 invasion of Ukraine, the Segezha Group relied on Austrian-based Andritz and German Voith for crucial machinery. Using “digital twins” – a type of laser scanning that produces precise manufacturing—the timber giant is looking to improve production stability while reducing its dependence on Chinese suppliers.

Segezha, which is now looking to India, China, and Africa to make up for losses in crucial European markets, is accelerating its 2024-25 import substitution strategy—which will see huge numbers of new press rolls, seals, and retrofitted paper machines—in response to the exodus of Western companies and subsequent, shortfall of equipment materials and know-how after foreign direct investment abandoned the country.

The push to retrofit comes as war sanctions have forced Russian plywood producers—once among the top three in the world for production—to flood Asia, Africa, and Latin America with cheap products. Earlier this year, Wood Central revealed that Russia was experiencing a growing “timber supply gap” (the gap between harvesting trees and manufacturing timber), with the supply chains’ reliance on faulty equipment slowing down production and reliability of timber and paper supply through China and into the greater Eurasian region.

Author

  • Jason Ross

    Jason Ross, publisher, is a 15-year professional in building and construction, connecting with more than 400 specifiers. A Gottstein Fellowship recipient, he is passionate about growing the market for wood-based information. Jason is Wood Central's in-house emcee and is available for corporate host and MC services.

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