15.08.2007 - RMK sales revenue in the first half-year of 2007 was MEEK 748.9 29.09

The State Forest Management Centre (RMK) earned MEEK 748.9 in the first half-year of 2007, which comprises 53% of the budgeted income and is MEEK 131.9 more than it earned during the same period last year. Most of the income earned by RMK was from the sale of timber.

“The increase in income was caused by the rise in the price of timber”, said Jaanus Laas Financial Director of RMK. “While a cubic metre of timber cost on average EEK 476 in the first half-year of last year, this year it costs EEK 594.”
The main reason for the increase in timber prices is the price growth on the European market caused by an increased demand for sawn timber, which also enables local sawmills to offer a higher price for raw materials.

In the first half-year, RMK paid MEEK 91.7 from forest income into the state budget, which is 57% of the amount planned for this year.

A total of 1.13 million cubic metres of timber was sold for MEEK 671.2, which comprises 60.4% of this year’s estimated sales revenue of timber. During the same period in 2006, 1.16 million cubic metres of timber was sold for MEEK 553.

“The cold period, which only lasted for five weeks, obstructed the performance of all planned cutting works, therefore timber supplies to clients were partially shifted into the second half-year”, explained Ulvar Kaubi, Marketing Manager of RMK.

In 2007, RMK plans to invest a total of MEEK 170, of which the largest share accounts for investments in the renewal of forest roads and drainage objects. To reduce the exposure of forests to fire, fire-places equipped with spark-catchers will be installed in the near future at the most frequently used campfire sites and a pilot project for installation of fire surveillance cameras will be launched in the Piirsalu-Vihterpalu region.

RMK is a profit-making state agency founded on the basis of the Forest Act, whose main objective is the economical and effective management of state forests. RMK grows forest renewal material, organises forest works and deals with the sale of forest and timber, and organises the care of game. In addition, RMK creates possibilities for movement in nature and forest holidays in recreation areas, and develops awareness of nature. RMK manages 38% of Estonian forests.

Further information:

Jaanus Laas
Financial Director of RMK
+372 676 7572