Timber industry cluster

Timber industry cluster of the Republic of Komi was established in 2016. The cluster development program contains a number of priority areas determining the cluster development prospects, including the creation and development of new infrastructure facilities, the modernization and technical re-equipment of existing production facilities, increasing the capacity of the nursery, added-value wood conversion, and integrated wood processing.

The uniqueness of the timber industry cluster of the Republic of Komi is in its rich natural potential, presence of all production stages beginning from growing and protecting forests, harvesting and finishing with wood raw materials deeper conversion. A good geographic location of the region is another unique advantage. Its value is the additional spatial resource, the proximity of the cluster potential participants providing for active interaction between the participants and partnership between companies and educational and scientific institutions.

Considering the peculiarities of the existing forest industry structure, regional forest resources and their current use, the main activities in the forestry cluster include:

  • low-grade timber conversion including conversion in pulp-and-paper and board manufacturing
  • timber advanced mechanical processing
  • wood chemistry
  • bio-energy as a part of bio-fuel production and expanded bio-fuel consumption in the region
  • expanding and improving the system of forest and road-building machinery maintenance

In the Republic of Komi, there are almost all elements typical to the cluster structure. Their interaction within the timber cluster could strengthen each other and contribute to the competitiveness increase.

The timber industry cluster of the region includes 15 regional companies and organizations. Among them there are JSC Mondi SLPK, Zheshart LPK LLC, Luzales LLC and others.

In February 2017, by the decision of the Ministry of Industry and Trade of Russia, the timber industry cluster of the Republic of Komi was included in the register of industrial clusters and specialized organizations meeting the requirements of an industrial cluster and a specialized organization that is being formed to apply incentive measures in industrial sphere (Order of the Ministry of Industry and Trade of Russia No. 511from February 22, 2017).

Inclusion of the cluster in the register is an opportunity to receive state financing of cluster projects in the field of production, research, as well as to cover budget costs on education, innovative developments, and infrastructure development.

Characteristics of industrial clusters’ state support

  1. federal budget subsidies are granted directly to the company following the agreement with the Ministry of Industry and Trade of the Russian Federation
  2. subsidy covers up to 50 per cent of the company’s project costs
  3. subsidy is transferred twice a year and is approved by documents acknowledging the earlier incurred charges
  4. 2015 costs can be also submitted for recovery agreement with the Ministry of Industry and Trade of the Russian Federation is made for the whole project period (up to 5 years)

Subsidy can be directed to cover 

Process activities including

  1. licensing and certification of activities, products, services, and management systems
  2. legal and methodological documents elaboration
  3. engineering and technical staff training and retraining
  4. process activities’ loan service
  5. plant and equipment certification

Technological activities

  1. acquisition of machine-tool attachments
  2. training the staff to operate new equipment and software
  3. designing supplementary program modules and engineering documentation
  4. securing prototypes’ monitoring, measuring, testing and manufacturing
  5. designing of engineering documents, technologies and technological processes
  6. leasing payments on account of fixed assets
  7. servicing the technological activities’ loans

The state is ready to cover half of cluster project expenses to companies meeting the stated selection criteria and ensuring growth of high-performance jobs by 15per cent and the performance of one of the following indicators:

  • 10 per cent reduction of costs for components purchased with external organizations
  • 10 per cent growth of the project participants’ proceeds
  • project originators’ 10 per cent growth of added value growth of costs for components acquisition with the project originators





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