Some smaller entities could face the threat of bankruptcy. "Timber costs a dozen percent more each year. If supply of the material was higher and its prices more stable, we would construct the new plant in Poland and not in Russia," said Paweł Wyrzykowski, president of Pfleiderer Grajewo. Boosting the supply of wood is not possible according to the authorities of the State Woods (LP).
We are aware of the problems of the wood sector, but we cut as much as we can bearing in mind the increment of wood in the forests," said Wojciech Skurkiewicz, a spokesman for LP. In 2008 the market will receive 30.34 million cubic meters, which is roughly the amount planned for 2007. However, 2007's allocation is expected to drop by 2 million cubic meters. Industry seniors said that the proposed increase in prices by LP are unacceptable and they have increasing problems with pushing additional costs onto clients.
