Elaboration and Analysis of Wood Processing Industry Residuals in Rasina and Toplica Region and Aleksinac and Raška Municipalities

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Elaboration and Analysis of Wood Processing Industry Residuals in Rasina and Toplica Region and Aleksinac and Raška Municipalities MRS. BRANKA MITROVIĆ

TABLE OF CONTENTS 1. Regional Overview and Data Analysis... 8 2. Rasina District Kruševac, Trstenik, Aleksandrovac, Brus, Ćićevac and Varvarin... 15 3. Toplica District Prokuplje, Kuršumlija, Blace and Žitorađa... 18 4. Raška Municipality... 21 5. Aleksinac Municipality... 22 LIST OF TABLES Table 1: Annual average available wood residuals in studied 12 municipalities in target region... 5 Table 2: SWOT Analysis... 7 Table 3: Forested areas per municipality... 9 Table 4: Forested areas annual cuttings of hardwood and softwood... 9 Table 5: Number of wood processing firms by size and municipality... 11 Table 6: Processed volume of wood by Wood Processing Industry per Municipality in mᶾ on average in 2013-2015... 12 Table 7: Average Raw Material Input per municipality by major species 2013-2015... 13 Table 8: Average Production of Wood Residuals 2013-2015 by type... 14 Table 9: Distances in the Rasina region (km)... 15 Table 10: Transportation fleet wood processors in Rasina District... 16 Table 11: Distances in the Toplica District (km)... 18 Table 12: Transportation fleet wood processors in Toplica District... 18 Table 13: Distances in the Raška District (km)... 21 Table 14: Distances in the Toplica District (km)... 22 LIST OF FIGURES Figure 1: Produced average quantity of wood residuals (rmᶾ/a) per municipality 2013-2015.. 4 Figure 2: Map of the Target Region, with underlined researched municipalities... 8 Figure 3: Processed wood volume per specie... 12 Figure 4: Wood Residuals Availability in the Region... 13

Summary of main research findings Summary of main research findings The Rasina District occupies central parts of Serbia. The district encompasses City of Kruševac and 5 other municipalities - Varvarin, Trstenik, Ćićevac, Aleksandrovac and Brus. The Toplica District occupies southern parts of Serbia. The district encompasses municipalities Prokuplje, Blace, Kuršumlija and Žitorađa. Aleksinac Municipality is located in the Nišava District in south-eastern part of Serbia. Raška Municipality is located in the Raška District in south-western part of Serbia. All those cities and municipalities have been at the focus of this research. The objective of the assignment was to identify wood processing facilities in the City of Kruševac and 11 designated municipalities and respective availability of wood residuals for fueling planned local biomass District Heating Centers (DHCs). In researched region total of 61 wood processors have been identified and surveyed. Number of additional unregistred small sawmills have been taken into account. They especially play important role in the region along Kosovo border, where illegal cross-border trade is present. A number of them did not want to take part in the survey, prefering to stay of the record. Those who have closed their plants were also considered as indication of the consolidation process in wood processing industry that is going on in the region and in whole Serbia. In addition, Serbian law allows small entrepreneurs to temporarily close their businesses, up to one year. This makes a number of small seasonal family-owned sawmills not easy to track. Identified wood processing industry links as well as the collected data showing total volume of processed wood and produced wood residuals clearly demonstrate that Kuršumlija and Kruševac are two main concentration points for the wood processing industry. Kuršumlija is the one single municipality with the highest biomass potential, included forested areas and their annual increment (wood mass growth on annual basis). This distribution of the biomass Rasina and Toplica Districts and Aleksinac and Raška Municipalities Wood Processors 3

Summary of main research findings potential and wood industry is also translated in the produced quantities of wood residuals. Figure 1 shows the quantities of produced wood residuals per municipality. The wood processing industry has been, in recent years, advancing the most in the Kruševac, Kuršumlija and Varvarin municipalities. Over the researched period, the prices of wood residuals have been growing nominally, expressed in RSD. However, the prices converted in have remained rather stable. It is to be expected that prices will follow the increasing trend over the next years because of the development of the demand side including mini pellet and briquette production facilities, as well as the expected finalization of wood biomass based district heating centers, with project on-going in Kruševac. However, investment in forest infrastructure (e.g. access roads and machinery) and occasional large-scale ice breaks could bring prices down in the mid-term, changing the trend of long-term incremental increase of wood residual prices. Figure 1: Produced average quantity of wood residuals (rmᶾ/a) per municipality 2013-2015 120000 100000 80000 60000 40000 20000 0 Note: raum meters Research showed that the companies engaged in wood processing are specialized in this field so that the largest number of companies in addition to the primary wood processing produces some semi-finished or final products. It is about a maximum utilization of raw materials for Rasina and Toplica Districts and Aleksinac and Raška Municipalities Wood Processors 4

Summary of main research findings their drying kiln, heating boilers, production of briquettes and pellets. The transportation fleet almost doesn t exist within wood processing companies so they have signed contacts with the other companies related to the transport of raw material and finished products. Total Raw material input in the studied area has been 208.202 mᶾ, and total quantity of produced wood residuals 133.760 rmᶾ (26.966 rmᶾ placed on the market and 106.794 rmᶾ for internal use). According to our estimate based on the consistent information we got from interviews, there are approximately 20% more wood residuals produced, which are not registered in the books. Residuals remaining in the forest have not been taken into account. Taking into account legal requirements for substantial part of the residuals to remain in the forest, current forest exploitation practices, configuration of terrain and the level of development of the forest infrastructure in the area; we estimate that between 25,000 and 30,000 rmᶾ/a of residuals could be collected in the forests. Adding up all the sources wood processing industry, including unregistered and seasonal processing as well as accessible and surplus forest residuals, we estimate that there is in total 170.056 rmᶾ of wood residuals available in the region see Table 1. Table 1: Annual average available wood residuals in studied 12 municipalities in target region Wood Residual Availability rmᶾ Wood processors Production On market 26.966 Internal use 106.794 133.760 Unregistered production estimate (20%) 5.393 Accessible forest residuals estimate app. 30.903 TOTAL 170.056 It is important to note that the supply side production of wood residuals was researched. Therefore, wood processing companies that only consume wood residuals (demand side) such as wood pellet plants were not taken into account, as their processing of wood residuals consumption cannot be added to the production part. Similarly, with companies that bought produce wood residuals themselves, but who also buy up residuals from other companies Rasina and Toplica Districts and Aleksinac and Raška Municipalities Wood Processors 5

Summary of main research findings throughout the region, only the part they produce (supply) themselves was taken into account in order to avoid duplication. Around 90% wood used by wood processors is from this region and smaller part is being sold to other regions or abroad (e.g. to Kronospan Serbia in Lapovo). Based on the geographic characteristics of these regions, as well as on the existing wood processing industry and the way forestry administration is set-up in Serbia; for the purpose of this research we can identified 4 different areas: South-western part, with wood processing plants concentrated around National Park Kopaonik and Raška Municipality and parts of Brus Municipality belongs here. Northern Part concentrated around Forest Administration Kruševac and includes the City of Kruševac and municipalities Brus, Aleksandrovac, Trstenik, Ćićevac and Varvarin. Southern and South-eastern Part concentrated around Forest Administration Kuršumlija and includes municipalities Kuršumlija, Prokuplje and Blace. Eastern Part concentrated around Forest Administration Niš including municipality s Žitorađa and Aleksinac. Rasina and Toplica Districts and Aleksinac and Raška Municipalities Wood Processors 6

Summary of main research findings In recent years, there has been consolidation of the wood processing sector in the region. Similar like in other regions of Serbia, many smaller sawmills have been closed or were taken over by larger companies which extended their activities and in addition to the primary wood processing starting to get engaged in the production of wood semi-finished and finished wood products and wood pellet. Also, wood processing plants and facilities are increasingly being concentrated on the main roads and in the lower regions. Because of unfavorable weather conditions facilities that are higher-up in the mountains have to be closed during the winter months. SWOT analysis, in table below outlines Strengths, Weaknesses, Opportunities and Threats for the wood residuals production and availability on the market in targeted regions. Table 2: SWOT Analysis STRENGTHS Abundance of forests and increasing biomass stock Sizable amounts of produced wood residuals. Wood processors also have transportation potential trucks and other vehicles are available Openness for expanding business ties on the side of wood processors Increasing cross- border wood trade good geographical location and transport connections (highway E75 and railways) OPPORTUNITIES Huge untapped potential especially in private forests. Local municipalities are conducting projects of fuel switch of district heating from fossil fuels to wood chips (Kruševac) Joint approach to larger biomass customers, such as Kronospan Serbia or District heating centers. WEAKNESSES Hilly terrain and lack of infrastructure (access roads) in forests. Lack of access to finance Dependence on major raw material suppliers Seasonality of production, especially in higher mountain`s areas. THREATS Family-sized companies are often dependent on the personal fortunes of the single owner Disloyal competition from illegal loggers Rasina and Toplica Districts and Aleksinac and Raška Municipalities Wood Processors 7

1. Regional Overview and Data Analysis Research of wood processing industry, focused on the supply side (production) of wood residuals and it has been conducted in the following municipalities: Aleksandrovac, Brus, Varvarin, City of Kruševac, Trstenik, Ćićevac, Raška, Kuršumlija, Prokuplje, Blace, Žitorađa, Aleksinac. This is highly forested region, as Table 3 shows. Figure 2: Map of the Target Region, with underlined researched municipalities Source:Wikimedia

Regional Overview and Data Analysis Table 3: Forested areas per municipality Municipality Forested area (ha) Aleksandrovac 13.411,15 Brus 28.535,80 Varvarin 4.993,01 Kruševac 25.965,42 Trstenik 12.310,48 Ćićevac 2.597,04 Raška 29.087,92 Kuršumlija 54.428,56 Prokuplje 28.935,95 Blace 11.398,55 Žitorađa 2.323,00 Aleksinac 24.338,73 TOTAL 238.325,61 Source: Statistic Bureau of Republic of Serbia According to the official data of Statistic Bureau of Republic of Serbia, based on agricultural census, annual cuttings in focused municipalities of hardwood are 276.906 mᶾ and 32.126 mᶾ of softwood. This provides both firewood for households, which is a priority, and raw material for wood processing industry. Table 4: Forested areas annual cuttings of hardwood and softwood Municipality Hardwood m 3 Softwood m 3 Aleksandrovac 17.991 2.733 Brus 35.112 3.334 Varvarin 6.479 32 Kruševac 44.087 3.153 Trstenik 16.426 1.051 Ćićevac 1.515 0 Raška 18.534 15.923 Kuršumlija 31.284 3.593 Prokuplje 58.531 221 Blace 13.157 514 Žitorađa 1.140 320 Aleksinac 32.650 1.252 TOTAL 276.906 32.126 Rasina and Toplica Districts and Aleksinac and Raška Municipalities Wood Processors 9

Regional Overview and Data Analysis National forests in Serbia are managed by state-owned companies Srbijašume, Vojvodinašume and by National Parks. Around 50% of all forests in Serbia are private forests. This percentage is increasing due to the on-going restitution process. Forests in the target regions are managed by branches of Srbijašume, based in Kruševac, Kuršumlija, Raška and Aleksinac and by National Park Kopaonik, with headquarters at Suvo Rudište in Raška. Forest Economy Kruševac includes Forest Administrations Kruševac, Brus, Aleksandrovac, Trstenik and Ražanj. Total area under forests in those municipalities covers 40.778 ha, with total volume of 9.141.039 mᶾ, on average 224,16 mᶾ/hа. Annual increase of biomass volume is 236.512,40 mᶾ, on average 5,8 mᶾ/hа. There are 40.993 ha of private owned forests on this territory. Forest Economy Kuršumlija includes Forest Administrations Kuršumlija, Prokuplje and Blace. State forests in those municipalities covers 62.089 ha, with total volume of 11.716.153 mᶾ, on average 188,70 mᶾ/hа. Annual increase of biomass volume is 326.241 mᶾ, on average 5,3 mᶾ/hа. There are 54.326 ha of private owned forests on this territory. Forest Administrations Aleksinac has 12.827 ha under forests, with total volume of 2.641.388 mᶾ, on average 205,92 mᶾ/hа. Annual increase of biomass volume is 73.113,90 mᶾ, on average 5,7 mᶾ/hа. Forest Administrations Raška has 12.856 ha under forests, with total volume of 1.540.894 mᶾ, on average 119,85 mᶾ/hа. Annual increase of biomass volume is 47.567,20 mᶾ, on average 3,7 mᶾ/hа. Rasina and Toplica Districts and Aleksinac and Raška Municipalities Wood Processors 10

Regional Overview and Data Analysis National park Kopaonik covers 11.969 ha within the municipalities Raška and Brus (surface ratio 80% to 20%). Under forest is 7.427 ha from which 350,22 ha is privately owned. Average biomass volume is 341 mᶾ/hа and average annual increase of biomass volume is 6,71 mᶾ/hа. Table 5: Number of wood processing firms by size and municipality NUMBER OF WOOD PROCESSORS (per annual log input m³) MUNICIPALITY Over 1,000 Below 1,000 Kruševac 6 10 Aleksandrovac 5 Brus 3 Trstenik 2 4 Ćićevac 2 2 Varvarin 1 3 Prokuplje 1 4 Žitorađa 1 Kuršumlija 3 1 Blace 5 Raška 4 1 Aleksinac 3 TOTAL 24 37 In this research we interviewed 61 saw mills see Table 4. According to our research 208.202 mᶾ of raw material is being processed on average annually in the period 2013-2015. Rasina and Toplica Districts and Aleksinac and Raška Municipalities Wood Processors 11

Regional Overview and Data Analysis Table 6: Processed volume of wood by Wood Processing Industry per Municipality in mᶾ on average in 2013-2015 Municipality Average Raw Material Input (mᶾ) 2013-2015 Kruševac 29.995 Aleksandrovac 1.450 Brus 600 Trstenik 4.683 Ćićevac 20.820 Varvarin 1.327 Prokuplje 2.800 Žitorađa 150 Kuršumlija 117.200 Blace 13.400 Raška 14.783 Aleksinac 994 TOTAL 208.202 Out of the processed input, more than four fifths is beech. Softwood makes 15% of the processed wood, with fir/spruce being predominant with its 11%. This is demonstrated in the Figure below and is presented in detail in the Table nr. 6. Figure 3: Processed wood volume per specie Oak & other hardwoo d 4% Poplar 1% Fir/spruce 11% Pine 3% Beech 81% Rasina and Toplica Districts and Aleksinac and Raška Municipalities Wood Processors 12

Regional Overview and Data Analysis Table 7: Average Raw Material Input per municipality by major species 2013-2015 Average Raw Material Input by major species 2013-2015 Municipality Fir/Spruce Pine Beech Oak & other Poplar Total hardwood Kruševac 4.071 25 23.749 1.700 450 29.995 Aleksandrovac 808 72 260 10 300 1.450 Brus 459 81 60 600 Trstenik 1.550 1.535 968 630 4.683 Ćićevac 17.360 3.460 20.820 Varvarin 1.327 1.327 Prokuple 1.100 530 237 933 2.800 Žitorađa 150 150 Kuršumlija 1.425 115.585 190 117.200 Blace 3.130 2.310 6.440 1.520 13.400 Raška 9.825 2.389 2.569 14.783 Aleksinac 27 567 400 994 Total 23.722 5.407 168.512 8.248 2.313 208.202 With total raw material input of 208.202 mᶾ and with most companies having their yield around 63%; there have been in the period 2013-2015 on average produced 133.760 rmᶾ of wood residuals. We have identified wood residuals sold on the market by type, and we have also identified the quantity of internally used wood residuals. The sold and internally used quantities add up to make total quantity of residuals. The most available wood residuals on the market are slabs and sawdust as it can be seen in the Figure 5 and is shown in detail in Table 7. Figure 4: Wood Residuals Availability in the Region Shaving sold on Market 7% Solid Dry Waste Sold on Market 3% Sawdust Sold on Market 29% Slabs Sold on Market 61% Rasina and Toplica Districts and Aleksinac and Raška Municipalities Wood Processors 13

Regional Overview and Data Analysis Table 8: Average Production of Wood Residuals 2013-2015 by type Municipality Average Production of Wood Residuals 2013-2015 Sawdust Shavings Solid Dry Sold on sold on Waste Sold Market the on the Slabs Sold on Market Internal Use Total by municipality Market Market Kruševac 3469 1455 7850 12.774 Aleksandrovac 278 140 4 422 Brus 120 63 18 201 Trstenik 1223 195 140 392 1.950 Ćićevac 3075 1447 1400 330 6.252 Varvarin 43 20 100 347 510 Prokuple 550 223 247 1.020 Žitorađa 50 25 75 Kuršumlija 2718 867 97020 100.605 Blace 2753 1997 250 5.000 Raška 2155 1468 217 813 4.653 Aleksinac 100 120 78 298 16.534 7.875 1.717 840 106.794 Grand Total 133.760rmᶾ/a The company Simpo ŠIK from Kursumlija at its a sawmill cuts annually 24.000 m 3 of beech logs with the percentage of utilization of 52%. Therefore residuals make 48% or a total of 11.520 rm 3. In addition, Simpo ŠIK directly inputs additional 85.000 m 3 of firewood for production of plywood and hardboard. This lowers the total residual production in relation to the total wood utilization by the company. Rasina and Toplica Districts and Aleksinac and Raška Municipalities Wood Processors 14

Rasina District Kruševac, Trstenik, Aleksandrovac, Brus, Ćićevac and Varvarin 2. Rasina District Kruševac, Trstenik, Aleksandrovac, Brus, Ćićevac and Varvarin The relief of the Rasina region is dominated by lowlands of Kruševac and Aleksandrovac basins surrounded by mountains of different heights. However, regional roads are in good condition. This region is close to the highway E75 and to railway cargo terminals. Forest access roads are not in good condition and the maintenance is often inadequate and where large portion of forests on difficult terrains is inaccessible. City of Kruševac is administrative center of Rasina District and it is situated on the crossroads between other towns of the region. Distances are not great, not greater than 45 km between the towns, often less than 30 km. This satisfies the most economic sourcing expectations. The greatest distance in the region is between Brus and Varvarin, which is 71 km 1. Table 9: Distances in the Rasina region (km) Source: Google Maps Municipalities km Kruševac - Trstenik 29 Kruševac - Varvarin 26 Kruševac - Ćićevac 20 Kruševac - Aleksandrovac 35 Kruševac - Brus 44 Brus - Varvarin 71 As it can be seen in Table 9, the transportation fleet almost doesn t exist within wood processing companies so they have signed contacts with the other companies related to the transport of raw material and finished products. 1 According to Google Maps Rasina and Toplica Districts and Aleksinac and Raška Municipalities Wood Processors 15

Rasina District Kruševac, Trstenik, Aleksandrovac, Brus, Ćićevac and Varvarin Table 10: Transportation fleet wood processors in Rasina District Municipality Nr. of trucks Total tonnage Kruševac 9 188 Trstenik 3 60 Aleksandrovac 2 47 Brus 0 0 Ćićevac 2 48 Varvarin 1 24 Total 17 367 In this region the most of wood processors are located in the Kruševac. Sparrow LLC. is specialized in the production of wooden pellets. The location of the plant is in Varvarin. Based on the production technology and capacity, Sparrow LLC is the leading producer of wooden pellets in the Region of Balkans, using the latest equipment. Technical Capacity of the plant is 10-12t per hour. Raw material is ensured for a calendar year in accordance with annual sales and production plan, based on the annual contract with public supplier Srbijašume. Due to the financial problems the factory is not utilizing its potential and is a target for take-over. Wood processing company Moca LLC is located in Jablanica village 20 km away from Kruševac. It was founded in 1920 and over time from the carpentry workshop it developed into a wood processing plant. During this period, four generations of one family worked on creating and maximizing the family business. Since 1991, it became the company and today Rasina and Toplica Districts and Aleksinac and Raška Municipalities Wood Processors 16

Rasina District Kruševac, Trstenik, Aleksandrovac, Brus, Ćićevac and Varvarin has a strong and stable production of elements obtained by processing beech. Company employs 70 workers. This concept has been proven successful, and now the entire production is based on exports to Europe, Asia and Africa, according to the orders of known customers. Since 2009, this company has been certified for the manufacture of wooden elements. Company for consulting and management in forestry - Fornet LLC from Belgrade has leased the wood processing plant in Ćićevac from a company Simpo Vranje. This is one of the most important wood processing plants in this region with production of 13.200 m 3 of beech and oak. Municipality of Brus is part of NP 'Kopaonik', however it does not have developed wood processing industry. Rasina and Toplica Districts and Aleksinac and Raška Municipalities Wood Processors 17

Toplica District Prokuplje, Kuršumlija, Blace and Žitorađa 3. Toplica District Prokuplje, Kuršumlija, Blace and Žitorađa The Toplica District is hilly region consisting of Toplica-Kosanica basin surrounded by mountains of different heights. Regional roads are in good condition. Less so are the forest access roads, where the maintenance is often inadequate and where large portion of forests on difficult terrains is inaccessible. This region is in vicinity of highway E75. Prokuplje is administrative center of Toplica District and it is situated on the crossroads between other towns. Distances are not great, not greater than 35 km between the towns. This satisfies the most economic sourcing expectations. The greatest distance in the region is between Kuršumlija and Žitorađa, which is 50 km 2. Table 11: Distances in the Toplica District (km) Municipalities km Prokuplje - Blace 28 Prokuplje - Žitorađa 13 Prokuplje - Kuršumlija 34 Kuršumlija Žitorađa 50 Source: Google Maps As it can be seen in Table 10, the transportation fleet almost doesn t exist within wood processing companies so they have signed contacts with the other companies related to the transport of raw material and finished products. Table 12: Transportation fleet wood processors in Toplica District Municipality Nr. of trucks Total tonnage Prokuplje 0 0 Kuršumlija 3 72 Žitorađa 1 24 Blace 1 18 Total 5 114 2 According to Google Maps Rasina and Toplica Districts and Aleksinac and Raška Municipalities Wood Processors 18

Toplica District Prokuplje, Kuršumlija, Blace and Žitorađa The most significant wood processor in whole target area is Simpo ŠIK LLC. It was founded in 2010 as a part of the company Simpo a.d. Vranje. Simpo ŠIK has signed the contract of business technical cooperation with ŠIK Kopaonik a.d. in restructuring and the Rental Contract for mobile and immobile property of ŠIK Kopaonik in restructuring for the period of 20 years. In only few months, Simpo has managed to restart the production in completely ruined former wood industry giant, ŠIK Kopaonik. Production facilities were reconstructed, wetforming machine was modified and modernized, press was overhauled, chambers for heating and conditioning were repared, the computer system for monitoring and control of entire hardboard production process was installed. Two new boilers were bought, 14 km of steampipes was built and heating in the solid wood elements, plywood, hardboard and parquet factories was made functional. Facility for waste water processing was reconstructed and modernized, and now it is the biggest such facility within wood processing industry in the West Balkans. Today, the production is organized in sawmill, plywood factory, parquet factory, solid wood factory, hardboard factory and painted hardboard factory. The company Simpo ŠIK from Kursumlija at its sawmill cuts annually 24.000 m 3 of beech logs with the percentage of utilization of 52%. Therefore residuals make 48% or a total of 11.520 rm 3. In addition, Simpo ŠIK directly inputs additional 85.000 m 3 of firewood for production of plywood and hardboard. This lowers the total residual production in relation to the total wood utilization by the company. Rasina and Toplica Districts and Aleksinac and Raška Municipalities Wood Processors 19

Toplica District Prokuplje, Kuršumlija, Blace and Žitorađa The basic assortment consists of: hardboard (raw and painted), beech sawn timber, plywood (raw and waterproof), beech elements and parquet, which are produced according to quality standards SPRS ISO 9001:2008. Products of Simpo ŠIK are present on the Serbia, Bosnia and Herzegovina, FYR Macedonia, Croatia, Montenegro, Turkey, Italy, Germany, Sweden, Belgium, Morocco, Greece, Netherlands, Romania and Hungary markets, and the plan is to expand to the markets of other European countries. Municipality of Žitorađa is primarily one agricultural municipality. It does not have neither substantial forested areas nor wood processing industry. Rasina and Toplica Districts and Aleksinac and Raška Municipalities Wood Processors 20

Raška Municipality 4. Raška Municipality Area of the Raška Municipality is extremely mountainous, since 88% of the territory is above 500 m above sea level. In this area there is the highest peak of the Kopaonik National Park (2.017 m) and Golija Mountain. Regional roads are in good condition. Less so are the forest access roads, where the maintenance is often inadequate and where large portion of forests on difficult terrains is inaccessible. Raška municipality is situated in southwestern Serbia, in the middle of the Raška District and 80 km from Kraljevo, regional administrative center. Table 13: Distances in the Raška District (km) Municipalities km Raška - Kraljevo 80 Raška - Vrnjačka Banja 83 Raška - Novi Pazar 21 Raška Tutin 54 Source: Google Maps Considering transportation fleet of wood processors there is only 4 trucks with total tonnage of 96 t. Wood processing companies have signed contacts with the other companies related to the transport of raw material and finished products. Rasina and Toplica Districts and Aleksinac and Raška Municipalities Wood Processors 21

Aleksinac Municipality 5. Aleksinac Municipality The territory of Aleksinac municipality is composed of mountainous and lowland parts. Twothirds of the municipality is mainly agricultural land and one-third mountainous terrain. Regional roads are in good condition and the highway E75 and railways passing through municipality. Less so are the forest access roads, where the maintenance is often inadequate and where large portion of forests on difficult terrains is inaccessible. Aleksinac municipality is situated in southeastern Serbia in the northern part of the Nišava District and 32 km from Niš, regional administrative center. Table 14: Distances in the Toplica District (km) Municipalities km Aleksinac - Niš 32 Aleksinac - Ražanj 26 Aleksinac - Svrljig 59 Aleksinac - Merošina 45 Aleksinac - Doljevac 47 Aleksinac - Gadžin Han 53 Source: Google Maps Considering transportation fleet of wood processors there is only one truck with tonnage of 4t. Wood processing companies have signed contacts with the other companies related to the transport of raw material and finished products. Despite relatively forested municipality, wood processing industry is underdeveloped. Rasina and Toplica Districts and Aleksinac and Raška Municipalities Wood Processors 22

ANNEX 1: Survey Sheet Annex 1: Survey Sheet COMPANY AND CONTACT LOCATION NUMBER OF TRUCKS TOTAL TONNAGE t TYPE OF PROCESS SOURCE SRBIJAŠUME % NACIONALNI PARK TARA % Privately owned forest % IMPORT % % YIELD FINAL PRODUCT % SLABS % SAWDUST % SHAVINGS % SOLID DRY WASTE % INTERNAL USE % THE PRICE SLABS EUR/M3 SAWDUST EUR/M3 SHAVINGS EUR/M3 SOLID DRY WASTE EUR/M3 Rasina and Toplica Districts and Aleksinac and Raška Municipalities Wood Processors 23

ANNEX 1: Survey Sheet INPUT 2013 M3 FIR/SPRUCE % Type of Raw Material 2014 M3 PINE % 2015 M3 BEECH % OAK % MAPLE % WALNUT % ASH WOOD % POPLAR % Rasina and Toplica Districts and Aleksinac and Raška Municipalities Wood Processors 24