30.03.2009 - Supervisory Board approved new RMK budget 30.03

According to the proposal made by the Management Board of RMK, the Supervisory Board of the company discussed the new draft budget for 2009 at its meeting on Friday. In relation to the changed economic environment, it is estimated that the revenue of RMK will decrease by one third.

“The first two months of the year have shown a two-fold decrease in sales revenue compared to the same period last year, and timber prices have fallen below the 2004 level,” said Ülle Rajasalu, Chairwoman of the Supervisory Board of RMK. “This is why the Management Board of RMK prepared a new draft budget that prescribes a decrease in costs by one third,” Ülle Rajasalu added.

The new RMK budget for 2009 takes into consideration the decrease of total revenue by almost MEEK 400 or about 25%. RMK plans to decrease both production and general administration costs in the same amount. “In the new budget, the general administration costs of RMK will decrease by 27% when compared to last year. Due to the reorganisations made last year, we are able to take costs to the 2004 level,” Ülle Rajasalu explained.

In relation to the tasks that have been added to RMK this year for performing nature protection maintenance works in national parks and protection areas, maintenance costs will increase by MEEK 20. “During the preparation of the new budget, the goal was still to fulfil all forest management and nature preservation related obligations,” Ülle Rajasalu said. “Also, it is important to preserve all current job positions at RMK and ensure maximum employment for partners as well,” Rajasalu added.

The volumes of silviculture works in the budget for 2009 have been planned as follows: 4386 hectares of new forest will be established, 13 000 hectares of young growth will be maintained and 10 800 hectares of thinning will be performed. The volume of the timber to be sold from the state forest in 2009 is 2.4 million cubic metres. The expenses related to nature education, provision of possibilities for hiking in nature and additional nature protection works are MEEK 60.

RMK is a profit-making state agency established under the Forestry Act, aimed at sustainable and efficient management of the state forest. RMK grows reforestation materials, organises forestry works, is engaged in the sale of forest and timber and organises game upkeep. In addition, RMK establishes opportunities for hiking in nature and forest recreation on recreational areas, and shapes awareness of nature. RMK manages 38% of Estonian forests.

Additional information:
Ülle Rajasalu
Chairwoman of the Supervisory Board of RMK
Telephone: +372 511 7319
E-mail: ulle.rajasalu@envir.ee

Aigar Kallas
Chairman of the Management Board of RMK
Telephone: +372 528 1299
E-mail: aigar.kallas@rmk.ee