The Lithuanian woodworking sector has developed more rapidly than any other industry in the country and in 2002 it accounted for 10% of Lithuania’s total industrial production.
Sales of wood production and its materials increased by 22.7%, paper by 31.3% and furniture by 30.7% on 2001.
Antanas Morkevicius, of the Association of Lithuanian Producers of Wood Products, said: “It is interesting to note that the growth of production and sales was reached without increasing the consumption of raw materials.
“In 2002, in the sawmilling industry, the share of dried and planed sawnwood increased significantly. The wood based panels industry saw an increase in the share of finished panels, while the paper industry saw an increase in the share of cardboard produced from waste paper.”
Furniture, furniture components and prefabricated houses are performing best in terms of production and exports. Most furniture companies are increasing production, new businesses have been established and there has been consistent growth in investment.
More than 900 enterprises manufacture various wood products. The biggest slice of wood production – 46.5% – is produced by 35 companies, each employing more than 200. The main sector is furniture, which represents 32% of total sales, followed by sawnwood at 21% and wood based panels and plywood at 15.4%.
The majority of production is exported – accounting for 67% of furniture, 70% of sawnwood, panels and plywood, and 60% of joinery. In 2002, furniture and its components made up the biggest share – 37.6% – of the total export of wood production.
Lithuania has been exporting furniture for many years. Formerly most of it was exported to Russia and other countries of the former Soviet Union, but since 1970 it has also been exported to western European countries.
In 2002 export revenue for furniture and its components reached €237m. The main markets were Germany, Sweden, the UK and France and exports are likely to increase.
Sawnwood is Lithuania’s second main export commodity. Before the first world war it was exported to Germany and the UK markets but during the Soviet period – 1940-1990 – the exports ceased.
Mr Morkevicius said: “Recently, the export geography of sawnwood has widened. A considerable amount of it goes to the US and Canada. The increase of sawnwood exports was created by the establishment of the US capital company Ochoco Lumber in 1993 and the Canadian capital company Pajurio Mediena in 1994.
Ochoco Lumber imports sawnwood from Russia and produces dried and planed wood products. Pajurio Mediena produces planed coniferous sawnwood for export and works mainly with the UK-based agency Balfour Timber.
These two companies are the biggest producers and exporters of sawnwood in Lithuania. This year Estonia’s Sylvester sawmill will start activities in Lithuania and future production and export of sawnwood is likely to grow, said Mr Morkevicius.
