1. 24-27 March 2003STRATEGIES FOR THE SOUND USE OF WOOD 1 Seminar on STRATEGIES FOR THE SOUND USE OF WOOD Poiana Braşov, Romania 24-27 March POLICY FOR WOOD CONSUMPTION IN ROMANIA Session II By Ms. Constanţa Istrătescu, Scientific Research Secretary Mr. Dan Dumitru Copăcean, Head Marketing Department NATIONAL INSTITUTE OF WOOD ROMANIA

2. 24-27 March 2003STRATEGIES FOR THE SOUND USE OF WOOD 2 CONTENTS Summary Introduction 1. Institutional framework 2. The wood production and consumption  2.1. The structure of wood trading company  2.2. Wood consumption policy  2.3. Wood for energy 3. Patterns of decisional analysis in the marketing management

3. 24-27 March 2003STRATEGIES FOR THE SOUND USE OF WOOD 3 SUMMARY The Romanian policy in the field of wood established: - decreasing volume of wood exploitation through framing in limits established by forest management -changes in structure and legislation -privatisation in this field -alignment to the European legislation-Directive 68/89 EEC, Directive 89/106 EEC, Directive 94/62 EEC, and Directive 88/378 EEC -adoption and harmonisation of more than 87% European standards regarding wood and wood products

4. 24-27 March 2003STRATEGIES FOR THE SOUND USE OF WOOD 4 INTRODUCTION r in 1990 the wood industry was forced to answer the following challenged: èlessening of raw material sources èchanges on domestic and foreign markets which called for the increased wood products competitively èrestructuring of state companies in view of privatisation

5. 24-27 March 2003STRATEGIES FOR THE SOUND USE OF WOOD 5 rThe legal frame work in the period after 1990 contributed to: ébetter utilisation of wood starting from harvesting and ending with the processing in finished products éeducation of consumers éincreasing their acquaintance for the sound use of wood utilisation

6. 24-27 March 2003STRATEGIES FOR THE SOUND USE OF WOOD 6 INSTITUTIONAL FRAMEWORK is assures in principal through: p legal framework for forest preservation and sustainable management is provided by the Forest Bill (Law 26/1996) pDecision of Government No 695/1998-approving the wood selling by the National Forest Administration to the economic agents pLaw 654/December 2002-approving the conclusion by the National Forest Administration of long term contracts pLaw 133/1999-concerning the stimulation of private entrepreneurs in the setting up and development of small and medium size companies (SME’s)

7. 24-27 March 2003STRATEGIES FOR THE SOUND USE OF WOOD 7 r Law 96/2000-concerning the organisation and operation EXIMBANK S.A. of Romania r The Emergency Ordinance No 120/2002 concerning the approval of support system and export promotion with financing from the Budget r The Decision of Romanian Government 1493/2002 concerning the exempt and temporary reduction of custom duties from import for some goods-the wood sector taking advantages from reduction for: sawn timber, veneer, plywood of tropical wood species

8. 24-27 March 2003STRATEGIES FOR THE SOUND USE OF WOOD 8 r the professional association which, by their united membership policies can strengthen the wood harvesting and processing industry: m Romanian Furniture Manufacturers Association- APMR m Association of Romanian Foresters - ASFOR m Romanian Panels Manufacturers Association- APSLR m Patronising Organisation for Pulp and Paper Industry - ROMPAP

9. 24-27 March 2003STRATEGIES FOR THE SOUND USE OF WOOD 9 2. The wood production and consumption 2.1. Structure of companies in the wood sector, 1990-2002

10. 24-27 March 2003STRATEGIES FOR THE SOUND USE OF WOOD 10 2.2 Wood consumption policy After the first transition stage (1990-1994) when production fell throughout the wood industry, production of most wood products improved to meet new market demand (table 2)

11. 24-27 March 2003STRATEGIES FOR THE SOUND USE OF WOOD 11

12. 24-27 March 2003STRATEGIES FOR THE SOUND USE OF WOOD 12 The changes in the production of various wood products determined also, the change of the whole structure of this sector (table 3)

13. 24-27 March 2003STRATEGIES FOR THE SOUND USE OF WOOD 13

14. 24-27 March 2003STRATEGIES FOR THE SOUND USE OF WOOD 14 3.2. Wood for energy Projects concerning wood waste utilisation as raw material for energy production: p“Wood waste utilisation for district heating”- project PHARE RO-9504-01004-L001, solution implemented in Campeni town p“Project CEE-NNE 5/1999-00048 IMPROVE RES-”Improving the acceptability of RES in Romania wood industry for energy production through an appropriate management”

15. 24-27 March 2003STRATEGIES FOR THE SOUND USE OF WOOD 15 3. Patterns of decisional analysis in the marketing management The external environment analysis of the economic agent in the wood industry is based on the following aspects:  definition and determination of wood products market  psychological behaviour of final users and/or brokers  competition between producers  extent in which the macroeconomic policy and legislation have influence on the activity of company

16. 24-27 March 2003STRATEGIES FOR THE SOUND USE OF WOOD 16 The figure 1 shows a synthesis of the external environment

17. 24-27 March 2003STRATEGIES FOR THE SOUND USE OF WOOD 17 The company National Institute of Wood proposed a new method for determination value added extent starting from the client (see fig. 2)

18. 24-27 March 2003STRATEGIES FOR THE SOUND USE OF WOOD 18 Background element for the consumption policy promoted by the economic agent is the distribution channel. The best model recommended by National Institute of Wood is shown in the fig. 3.

19. 24-27 March 2003STRATEGIES FOR THE SOUND USE OF WOOD 19 Thank you !