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THE WOOD/FURNITURE INDUSTRY PROFILE
A. Definition of Industry
1. Description
Wood processing and furniture industry is an important branch of the processing industry and
is established based on the long tradition of wood processing in our country. Transformations
of post ’90 brought about several essential phenomena, such as:
Naissance of new forms of ownership and administration of forests; increase of illegal
felling; transformation of totally centralized enterprises to private businesses; liberalization
of wood market; and, liberalization of imports and exports.
Passing to the market economy during the transitional period, important changes of both
subjective and objective character occurred and these brought about changes in the
production chain in this industry and in its structure.
The following table summarizes the main economic data of the industry
Table 1: Main data of the wood processing/furniture industry
General data
1999
Share in
manufact.
Industry
2000
Share in
manufact.
Industry
2001
Share in
manufact.
Industry
2002
Share in
manufact.
Industry
Production(mln
leke)
3,503 9% 3,591 9% 2,390 4% 3953 6%
No. of
employees
2,759 8% 3,060 8% 1,846 5% 2752 7%
No. of firms 651 18% 702 20% 698 20% 786 22%
Investment
rate(mln leke)
122 3% 378 5% 280 2% 466 6%
Source: Instat, Annual Structural Surveys
The production in this industry has undergone low-paced growth, with the exception of year
2001, in which there was a considerable reduction due to power supply crisis.
In terms of labor power, this indicator has not increased noticeably in years, and in regard to
investments, with the exception of year 2001 (of power supply crisis), the trend is increasing,
In addition, these indicators are lower than in other manufacturing industries.
The number of firms in this industry is high, reaching to 786 for year 2002 and is related with
the nature of the production chain, which is broader than in the other sectors.
The trade balance in this industry is negative.
In thousand dollars
Trade indicators 1999 2000 2001 2002 2003
Export 13,100 13,392 12,872 16,171 12,237
Import 61,844 35,217 42,361 48,371 39,647