Timber Processing Operations Slowed Down due to Unpredictable Climate Changes in February 2011

After a cold January of 2011, while planning sales of pallet blanks in February, we have considered the influence of cold weather conditions, therefore the capacity of wooden pallet elements production was planned to be 15 percent less. But February of this year surprised us all. Due to strong wind in February, production of pallet blanks was suspended for three days, as there were no conditions for cranes of log supply to operate. In addition, supply of raw materials to sawmill was interrupted as timber trucks were forbidden to enter the forests. Finally, intensified political disagreements between Russia and Poland regarding three-sided permissions have resulted in problems of production transportation.

Considering the disadvantageous circumstances, which occurred in February of this year, the production scope of pallet blanks has decreased by 25 percent, instead of planned 15 percent. As a result, we have moved a part of February orders to the first week of March 2011. While planning the production level of pallet blanks in March of this year, we carefully consider the influence of disadvantageous nature conditions and expect that March will not present us with new and unpleasant surprises.