Dialogue and transparency: HS Timber Productions organizes its annual public consultation in the online environment

More than 100 people attended, on Thursday, 25 March, the Zoom-hosted stakeholder consultation about the policy and wood purchasing areas of HS Timber Productions, the eighth event of this kind organized by our company in Romania.

In the context of restrictions that make harder the activity of the entire sector, it is important for market players to find ways and means to continue to operate profitably in a market which is vital for the functioning of the economy at large.

Dan Bănacu, General Manager of HS Timber Productions Romania discussed ways in which the collaboration between all participants in the production flow - from primary harvesting companies to large processors - can lead to the creation of added value for the finished products.

HS Timber Productions is going through a continuous process of efficiency improvement, through the implementation - at a national level - of the Kaizen concept also to be more competitive and to be able to react to volatile market developments

"In our mills, in addition to technological investments, we have initiated a process of applying the Kaizen principles, through which we try to increase work efficiency even more, eliminate losses and involve people in the production process, in finding solutions," said Dan Bănacu.

Sustainably-managed forests, the basis of HS Timber Productions' business

Sustainably-managed forests are the basis of HS Timber Productions' business and, from this point of view, the purchasing director of HS Timber Group, Adrian Dulgheru, discussed the timber supply policy of HS Timber Productions, through which the company ensures that the raw material it processes is harvested responsibly, from uncontroversial sources and in full compliance with forestry legislation and regulations.

"Last year, HS Timber Group imported 50% of the processed logs, the rest - almost 6% of the total wood harvested in Romania - came from local sources," said Adrian Dulgheru.

Full compliance with national legislation also involves well-developed internal rules and, from this point of view, the Supplier Code of Conduct - derived from the internal employee Code of Conduct - is part of the documentation that HS Timber Productions’ suppliers in Romania must adhere to. “In Romania we do not purchase wood from national parks. We want our suppliers to respect this requirement,” closes Adrian Dulgheru.

The Code of Conduct, crucial for a safe and secure chain of supply

"This Code of Conduct plays an important role in the company's supply chain and that is why we have very high standards when we select our suppliers and collaborate with them," said Andrei Apăfăian, an officer in the supply chain control and certification department at HS Timber Productions. "It is important for us that our suppliers conduct their business in an ethical manner, respect the environment and pay special attention to the health and safety of their employees, among other things." Last year, the company carried out 625 audits of its supply chain, both audits of the chain of custody, audits in the harvesting plots, and audits at the forest management unit level, at their headquarters and in their harvesting plots, whose results show the overall image of how compliance with the rules can lead to the development of collaboration between suppliers and processing companies.

Competition rules and compliance

From the perspective of the relevant legislation - placed in the context of a market that is supervised by the competition authority - a review of competition rules and compliance given the recent practice in the sector was the central topic of the presentation of Bianca Naghi, lawyer at Guia, Naghi & Partners.

“Compliance with competition law is crucial for any market participant”, says Bianca Naghi. HS Timber Productions’ staff is regularly trained. All partners shall respect these rules in order to promote a fair and trustful business conduct.

12,000 hectares of forest in Romania are PEFC-certified

At a time when traceability and sustainable forest management are key words, PEFC™ - Programme for Endorsement of Forest Certification - is the world leader in certifications.

In Romania, almost 12,000 hectares of forest are PEFC-certified. Lucian Filigean, Secretary General of PEFC Romania, presented the benefits of certification for companies: “PEFC Romania is operational now for one year. We want to encourage forest owners and companies to get certified and to join to PEFC community for promoting traceability and sustainability.”

Ways for market recovery after the 2020 restrictions

Cătălin Tobescu, the president of the Wood Industry Association - Prolemn, ended the event by discussing ways for the market to recover after the restrictions that marked the year 2020.

"In the second half of 2019 and early 2020, the forestry sector was severely affected by measures to fight the COVID-19 pandemic, but, in the second half of 2020, a fairly rapid recovery began, supported by financial incentive packages,” said the president of Prolemn.

Participants concluded that wood from sustainably-managed forests is a renewable resource with enormous potential for economic, social and environmental development, and promoting the use of wood from sustainably-managed forests in various industrial applications and informing the public plays an important role in this step.