Expansion of sawmill capacity on the location Otiški vrh

Purpose and main goal of investment: By implementing new investment, the proposer will set conditions for reaching goals:

• increasing production capacity of cutting timber from 50.000 m3 to 100.000 m3.
• setting basis for development of primary wooden industry in region.

The investment will be implemented on current location of old sawmill of investors GG Slovenj Gradec. In order to ensure undisturbed production parallel implementation is planned which means parallel building of mechanized warehouse for preparing of timber for peeling and cutting, building of new production hall for cutting of timber and new sorting line. In this way existing production on spot will be undisturbed and transition to new sawmill line will bind minimum time and costs. After enforcement of regular production on new placed technology the old sawmill technology will be sold off.

The proposer argues the reasons for new investment on following facts;

• already established forest-wood chain, which includes foresting, sawmill, drying chambers, cogeneration with long term supply of heating energy, production of pellets ENplus quality, production of wooden houses, production of wood package, retail of wooden product in own retail stores,
• cutting of timber from Carinthia forests in Slovenia, directly on spot and reducing of exporting timber to near country Austria with aim to strengthen wood processing production as central activity of the company,
• increasing of productivity by modernization of technology in order to control production process with same number of employees at doubled capacity,
• the proposer goal is to become SIDG (Slovenian national forest company) strategic customer for timber which will ensure 30% of timber supply from Slovenian national forest; 70% of timber supply will be supplied from individual owner of forests in Carinthia region, Savinjska valley and Pohorje hills,
• inquiry of sawn wood as well as sawmill side products (sawdust, saw chips, bark) already exceeds current capacity which ensures marketing strategy by increasing supply to current customers and business partners.

Current situation description: Location Otiški vrh in municipality Dravograd has long term wood processing history. Main characteristics of the location are:

• already organized industry area of 4,4 ha with all necessary infrastructure;
• partly needed is only consolidation of manipulative area;
• mechanized wood warehouse well equipped with peeling and cutting line (circle cutting technology) for thin and thick timber; current capacity for 50.000 m3 cutting timber will be modernized and increased to 100.000 cutting timber;
• sorting line at the moment enables manual sorting; new automatic sorting line will enable technological conclusion of process;
• existing mechanical workshop for maintaining sawmill technology with special know how knowledge;
• organized open warehouse for timber and sawn wood;
• administrative office in the area;
• industry rail.
• at the moment drying chambers are dislocated but new are planned to be implemented on spot.

Location
Location is placed in district Šentjanž pri Dravogradu in the area of already placed production sawmill line of investors. Micro location is in the middle of industrial zone with all necessary public utilities and energetic infrastructure.

Technological characteristics
Circle cutting technology enables professional cut, high accuracy on the basis of electronic guided sawmill. Cutting programs enables at least 1.000 methods of cutting, archiving of all dates and informations by electronical media, visualizing of the whole process of sawing, remote control and prompt or just in time detecting and eliminating of mistakes. By configuration of renewed Linck circle sawmill line capacity of 100.000 m3 cutted timber is achievable.

Capacity
Theoretical capacity is:
• Renewed Linck circle sawmill line: 3.680 working hours / year respectively at cutting speed 20 meters/minute and average diameter of timber Φ 35 cm je theoretical capacity is 140.000 m3/ year in two shifts.

Market
Wood is natural material which is value is more and more appreciated. It is used in almost all production sectors as main or additional material. In states where wooden industry is high rated, wood is quoted as strategic material and quality of wooden products and with wood connected services are constantly being improved. Main characteristics of wooden industry in these countries are quick responsiveness, certain and prompt supply, permanent production. Opportunity to reach good position as well as on domestic or foreign market is excellent customer service. For reaching excellent service accessibility of raw material (timber), technological equipment and knowhow is needed.
Also, direct supply to final consumers of wooden products or to companies that are building in wood products such as construction wood, final roofing, paneling etc. is necessary.

Competition
In the Carinthia area small sawmill companies and building companies presents competition. In foreign markets larger sawmill companies well technically equipped and perfect organization presents competition. Such companies are also price competitive, have constant quality and ability of prompt delivery. The weakness of smaller sawmill companies are on the other side lack of ability to cooperating in larger projects due to low capacity or weak time response. The weakness of bigger sawmill companies, mainly EU companies, is lack of knowledge of Slovenian regulation, different methods of business methods, also lower prices.

Advantages of investor/proposer

• long term working experience and knowledge of employees, tradition, well known business position in area;
• quality of wood products and services,
• short delivery time from order to delivery due to existing capacity,
• wood products are ecological irreproachable,
• subscription production which means we are in a position to fulfill any customer order as well as finale consumers or companies that building in wood products,
• delivery of goods free on customer,
• Consistency statement – CE certification.

For efficient selling determination of target markets for certain groups of wood products is of key meaning. Due to long term experience of investors in this field of production following target markets was established:

 Estimated value of investment 11.652.750 EUR:

• Project documentation
• Circle sawmill line – reconstruction of Linck, EWD
• completion of transporters for removal of waste, crush device for woodchips
• Sharpen device
• end cutting device
• production hall 1500 m2
• Sorting line – renewed
• mechanized wood warehouse – renewed
• backhoe loader for manipulation of peeled timber
• constructional work
• drying chamber (5 pcs) + cauldron on biomass
• Fork lift device for wooden products
• machine and electrical installations
• liquid assets for stock

Investment is realizable under following conditions:

• strategic partnership with SIDG (Slovenian national forest company) in order to ensure 30 % of suppy of timber from national forests;
• partial subvention from Slovenian ministry of economy.
  

The investment opportunity contributes to the achievement of objective no. 5 Slovenia’s 2030 Development Strategies for Inclusive Growth regionally sustainable development, as it encourages the strengthening of economic activity in rural areas and in the field by promoting sustainable and inclusive economic development. Beside this:

1. Investor have at disposal Consistency statement – CE certification (PFC, PEFC)
2. Investor has already existing forest-wood chain (woodcutting, woodhouse building, pellets production)
3. Processing and use of side wood products efficiently in own production

Wood working and processing

Modern technology, equipment or infrastructure.