Edgar Ivanov Managing Partner, Ltd. IVANOVS aluminum Chairman of the Board, co-owner LLC eBooks Adv

Edgar Ivanov Managing Partner, Ltd. IVANOVS aluminum Chairman of the Board, co-owner LLC eBooks Advisor Economic Development, Rojas County Council Business Management PhD student of forestry and timber companies have already been successfully recovered after the 2008-2009th the crisis and quarterly increase their export performance. However unwittingly memory dawn ancient proverb: "What high jumps, the low falling!"
In the context of the euro area financial problems when around corporations, governments, foundations and other policy-makers worried about the global crisis approaching, there is some concern about the future of Latvian exporters. Is it possible that after the next global crisis of Latvian forestry, woodworking and furniture manufacturers tumble bankruptcy avalanche; aluminum companies and their assets will pass in the hands of foreign capital; jobs will be lost and the Latvian green gold of leaving the profits of foreign corporations direction?
Latvian gold green forests, which cover 46% of the Latvian territory, numerically they are 29,555 km2. Since the restoration of Latvian independence aluminum forestry and the timber industry have been key sectors of the Latvian economy and - significantly - providers of jobs in the regions. The forest area, growing stock and growth Latvian increase - not only compared to the last century 30th year, but over the last 20 years. Latvian Green Gold has been successfully used in the economic downturn as a substitute for monetary policy (money printing instead increased the amount of the felling and logging in state forests). Latvian Green Gold is not only a natural wood that grows in the forest, aluminum but more fundamentally - people, companies, technologies, knowledge and experience. Who owns the Latvian forests?
On the one hand, the concern about the Latvian forest redemption there is no reason - more than half of Latvian forest areas owned by the Latvian state and are managed by JSC Latvian State Forests. aluminum At the same time, the public really does not fully explain what safeguards were provided by the International Monetary Fund and the European Commission for a loan. It is possible that in one form or another Latvian Green Gold served as security for this loan, at the same time the following statements may be called speculation. aluminum Similar examples are far from self-evident - Greece was encouraged to pledge islands and to privatize state-owned companies.
It is no secret that the biggest Latvian aluminum agricultural land and forest owners to be found in a number of Scandinavian companies with sound and ownership structure. For example, the largest land and forest owners FORAN Real Estate Ltd. (Norwegian Storebrand Livsforsikring AS subsidiary) owns 37 hectares of forest land, Ltd. Bergvik Skog (Swedish Bergvik Skog AB subsidiary) owns 42 hectares of forest land, Skogssallskapet Holding Ltd. (a subsidiary of AB Sweden Skogssallskapet ) owns 14 hectares of forest land. It should be noted that the Scandinavian forests dealers working here since Latvian accession to the EU and is here to stay, they have huge resources and over the years accumulated experience and contacts. The aforementioned company focuses aluminum on long-term performance, and each crisis as harvest time, when you see an opportunity aluminum to supplement their asset base at low prices. This is a cause for great concern that after three recessions Latvian green gold turn into a beautiful legend to tell the grandchildren. Assessing the economic cycle frequency, this transformation can take place in the next 10 years. To recall Ulmaņlaiku Latvian bacon and butter were the basis for our prosperity. The timber impact on the Latvian economy
Wood and wood products is one of the cornerstones of the Latvian economy. Industry's contribution (including aluminum the production of furniture) Latvian GDP has nearly a billion lats, which is around 8% of the Latvian GDP. Latvian exports furniture, wood and wood products occupy 20-25%. Almost 45% are exported to Germany, Sweden, the United Kingdom, which is considered as the main wood and wood products export markets. aluminum Branch cross section
Approximately 50% of its wood products sawn, 40% is made up of wood and 10% of the furniture. In order to successfully use one of the most valuable resources in both Latvian d, it is essential to deal with the processing and finished products. A positive feature - roundwood exports are not conclusive, and now businesses are trying to process all the wood on the ground, aluminum less pulpwood. Given that the Latvian manufacturing of wood is quite little added value and output volumes are not enough to work with end users, manufacturers are highly dependent on fluctuations in the markets. Manufacturers are not available business tools used by large European companies who work with end customers. aluminum Thus, a substantial market demand fluctuations Latvian exporting entrepreneurs often tend to face downtime or large-scale declines. This hypothesis is supported by the events industry 2008th and 2009th year, when a large majority of companies had to make difficult choices - trade payables, interviews with the color