The priority task of modernization of the processing branches is the organization of lumber production on the basis of use of the chipper-canter equipment.

The implementation of the programme measures will make it possible to increase in 2010 the share of innovative products in the total volume of the products shipped up to 6.5 per cent and the share of certified products in the total volume of the industrial production up to 70 per cent; to reduce the degree of wear of the active part of the fixed industrial and production-related assets down to 36.3 per cent and to increase the share of expenses for the equipment, tools and inventory in the investments in the fixed capital up to 77.9 per cent.

In 2006, the timber mill with the use of the chipper-canter line with the processing capacity of 230 thousand cubic metres of roundwood yearly was put into operation at Svetlogorsk Pulp and Cardboard Plant Open Joint-Stock Company.

It is planned to commission the similar plant on the basis of Shkov Newsprint Paper Plant.

The business plan of construction of the timber mill with the processing capacity of 80 thousand cubic metres of round wood per year at Novosverzhen Timber Mill Republican Unitary Enterprise has been developed and has passed the state expert examination in the Ministry of Economy.

Bellesbumprom Concern considers the construction of six mills more each having the processing capacity of 100 thousand cubic metres of round wood per year at Vitebskdrev Open Joint-Stock Company, Gomeldrev Open Joint-Stock Company, Mozyrdrev Open Joint-Stock Company, Rechitsadrev Open Joint-Stock Company, FanDOK Open Joint-Stock Company to be necessary. For the purpose of increase the loading of the production facilities for sawing and complex use of wood raw material, it is expedient to transfer the processing of coniferous bolt timber to the organizations of Bellesbumprom Concern having reserved the processing of soft deciduous raw material for the organizations of the Ministry of Forestry.

The necessary investments for construction of the timber mills will be 72billion roubles. The capacity to be introduced is 600 thousand cubic metres of processed roundwood per year.

It is planned to construct the two wood-chip board plants each having the capacity of 250 thousand cubic metres of round wood per year and being located near the forest and labour resources and existing infrastructure, at Vitebskdrev Open Joint-Stock Company and Ivatsevichdrev Open Joint-Stock Company. The amount of financing for construction of the above plants will be about 277.9 billion roubles.

The operating plants require the modernization of the facilities by replacement of the obsolete equipment with the up-to-date one at areas of preparing the chips, glue mixing and carpet forming. It will make it possible to improve the quality of wood-chip boards produced by Rechitsadrev Open Joint-Stock Company and Mozyrdrev Open Joint-Stock Company. The investment requirements are 48 billion roubles.

At present, the question on the necessity of construction of a wood-chip board plant with the capacity of 100 thousand cubic metres per year, the products of which will be used for manufacturing the panels of wooden houses is considered. The planned investment volume will be 110 billion roubles (in 2005, 111.8 thousand cubic metres of wood-chip boards to the amount of 48.5 million US dollars were imported to the Republic).

The construction of the two plants for producing thin (2-8 mm) medium-density fibreboard each having the capacity of 100 thousand cubic metres at Borisovdrev Open Joint-Stock Company and Gomeldrev Open Joint-Stock Company and one plant for producing thick (8-40 mm) medium-density fibreboard with the capacity of 100 thousand cubic metres per year at FanDOK Open Joint-Stock Company is provided for. The necessary amount of financing for construction of these plants is 258 billion roubles (in 2005, the medium-density fibreboards to the amount of 27.7 million US dollars were imported to the Republic).

The development of the industry will be determined by increasing the efficiency of use of forest resources and production potential and further technical re-equipment and modernization of the facilities, mastering of new and up-to-date technologies that will improve the product quality and raise the level of its competitiveness will make it possible to expand its assortment and increase the production volumes.

To attain the above objectives, the following measures shall be implemented:

• Development of the wood-sawing production on the basis of the chipper-canters with incidental obtaining of chips for producing the wooden board materials (wood-chip board, medium-density fibreboard) and use of the production waste in the boiler plants (for obtaining own heat power);
• Providing the wood-sawing facilities with new equipment for sawing the timber (that will make it possible to increase the productivity, to decrease the machining allowance of the timber produces and to obtain the high-quality wood-sawing products);
• Modernization of the drying facilities in the organizations including in Bellesbumprom Concern;
• High-quality drying of wood (reducing the expenses and saving the wood when producing the commercial timber, joinery, furniture panels and milled products for manufacturing the furniture).

To do this, it is provided for using the drying plants provided with computer base for controlling the drying regimes depending on the wood species, size, initial and final humidity and other factors determining the end result of the process;

• Improvement of the technology for sorting the timber with facing over the length and packaging as well as the technology for packaging the dry timber packs (that will ensure the marketable condition, safety of the products during the transportation and shipment to both internal and external markets).

The questions of creation of the production of glued beams and girders on the basis of the wood-sawing facilities of Svetlogorsk Pulp and Cardboard Plant Open Joint-Stock Company.

In the field of production of wooden boards (wood-chip board, medium-density fibreboard), it is planned to master the technologies with low power consumption for producing the wood-chip boards with fine-grained surface suitable for refining the surface, technologies for refining the surface of wooden beard materials such as laminating as well as the technologies of the dry method for the fibreboard production.

According to the main aspects of development of the plywood production, it is planned to re-equip the facilities with up-to-date machinery for debarking, peeling, jointing and drying the veener sheets, cutting to format, grinding the plywood as well as increase of the output volumes of bent glued workpieces for furniture production (GKD) including latoflex.

The measures provided for by the State Programme are based on providing the woodworking organizations included in Bellesbumprom Concern with the felling resources to the year 2015.

It is planned to increase the capacity of the facilities for producing the plywood by 48 thousand cubic metres at Borisovdrev Open Joint-Stock Company, Gomeldrev Open Joint-Stock Company, Rechitsadrev Open Joint-Stock Company and FanDOK Open Joint-Stock Company. Bellesbumprom Concern provides for producing the plywood by modernization of the operating facilities with the replacement and installation of wood-peeling machines and energy-saving driers for peeled veneer and creation of the new production of wide-format plywood.

The necessary amount of financing the plywood production is 27.7 billion roubles.

The modernization of the furniture production facilities at Mozyrdrev Open Joint-Stock Company and Gomeldrev Open Joint-Stock Company will require the total financing to the amount of 17 billion roubles.

The amount of financing required for implementing the measures for construction of the new plants and modernization of the operating ones in respect to all kinds of woodworking products (timber, wood-chip board, medium-density fibreboard, plywood, wooden house building, furniture) is estimated to be 969.6 billion roubles including the financing at the cost of the Innovative Foundation to the amount of 14.1 billion roubles, bank credits - 902.3 billion roubles and Republican Budget - 53.2 billion roubles. Besides, the own funds of the organizations of Bellesbumprom Concern will be attracted. The amounts of financing will be finalized when developing the business plans for each particular measures according to the results of the tenders and project developments.

The implementation of the measures for construction of new plants and modernization of the woodworking facilities of Bellesbumprom Concern will ensure the:

• increase of the wood processing volumes in the year 2010 up to 7,870 thousand cubic metres per year that exceeds the similar figure for the year 2005 by 4,610 thousand cubic metres, including those for processing the bolt timber - by 1,035 thousand cubic metres, plywood raw material for peeling - by 135 thousand cubic metres, process raw materials and firewood - by 1,440 thousand cubic metres and paper wood - by 2,000 thousand cubic metres;
• organization of new facilities for producing the bleached pulp and wooden house building;
• complex use and deepening of wood processing;
• manufacture of competitive and high-quality products.

Thus, the production volume in the organizations of the woodworking industry will increase from 431.7 billion roubles in 2005 (195 million US dollars) up to 1,101 billion roubles (498 million US dollars) or 2.6 times.

The total amount of financing the creation of new enterprises, new facilities at the operating enterprises and modernization of the operating facilities in the years 2007-2010 will be 2,781,988 million roubles, including the Republican Budget’s funds to the amount of 1,628,404 million roubles, bank credits – 1,151,084 million roubles and own funds of the organizations – 2,500 million roubles.