Our Corporate Communications staff spend time getting to know Sumitomo Corporation's different business sites around the world, reporting on how the people at those sites work. We will keep you up to date with the world of Sumitomo Corporation, which extends to every corner of the globe.
Kazuho Enaka,
Mass Media Relations Team, Corporate Communications Department
He was assigned to the Corporate Communications Department in 2006, after working in sales in the Wood Resources Business Department. He is currently in charge of communications for the Financial & Logistics Business Unit, the Kansai Regional Business Unit and the Global Strategy & Research Department. His weight-losing efforts are proving to be successful.
OAO Terneyles
Based in Plastun in Russia's Maritime Province, OAO Terneyles is Russia's largest integrated forest company, owning vast forested regions of 2.4 million hectares. Sumitomo Corporation holds a 45% interest in the company.
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The reporter and staff landing the airport
I visited Russia's largest forest company, OAO Terneyles, in which Sumitomo Corporation has been the largest single shareholder since 2007, at its headquarters in Plastun, a small town about 700 km distant from Vladivostok in Russia's Maritime Province. Touching down at the airport, I was struck by the sight of the unpaved runway and a single tiny wooden structure. Could this really be the airport terminal? Surrounded by trees and other vegetation, no other buildings could be seen in the immediate vicinity. This unassuming, quiet town, however, is home to a world-class forest company, a company with whom Sumitomo Corporation has built a deep partnership.
Log export port
In January 2009, Russia will sharply raise its export tariffs on log from the current 25% to 80%. It's no exaggeration to say that this is the equivalent of a substantial ban on log exports. Currently about 40% of logs traded worldwide are produced in Russia, as are more than 40% of the logs imported by Japan. This sharp rise in tariffs will have an immediate hindering effect on the export of these logs, resulting in a major impact on the Japanese housing, construction and other markets.
Processing factory currently under construction (as of October 2008)
Through this increase in export tariffs on log, the Russian government aims to process more logs within the country's borders in order to export them with added value. Export tariffs on processed timber, laminated woods and other such products will remain unchanged at 0% (tax-free).
Under these circumstances, we are carrying out a large project to construct a processing factory within Russia with the cooperation of OAO Terneyles, our longstanding business partner in this part of the world. The construction is proceeding at a rapid pace, with the aim of starting operation in early 2009. To complement our existing factories producing laminated woods used for posts and home interiors, we are now constructing a factory to produce veneer for plywood panels and processed timbers. There are high expectations that such a move will help us to increase our sales of Russian timbers yet at the same time stay on the right side of the Russian government.
Next＞＞＞
Enormous forest resources hidden within Russia / Forming bonds with the people of Russia
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