Production

The performance of improvement and regeneration cuttings by RMK workforce and the purchasing of services from contractors and the shipping of timber to customers is treated as the production process.
 
Production is the most resource-consuming process of RMK, accounting for a quarter of total costs and using a large number of employees and the majority of contractors. The objective of production is to produce a valuable timber assortment with optimum costs. This process is accomplished in compliance with the principles of sustainable use of forest.

The performance of silvicultural cuttings (thinning, uniform shelterwood cutting, improvement of young growths) requires skilled employees with long-term professional experience. For that purpose RMK employs a permanent staff of loggers. RMK performs relatively more thinning with its own employees and technology and increasingly less regeneration cuttings. Purchased services accounts for nearly 90% of the total cutting volume.

The best time for logging works is in the winter when the ground is frozen, but in order to unify the annual scope of activities it is essential to offer work during a longer period. One objective of the production is to ensure an even scope of activities during the eight month period. This guarantees the uniformity of offered services and cash-flow. As the cutting machines are expensive, the scope of contract offered to each contractor providing logging services will be increased to maintain competitiveness and sustainability.

Taking into consideration the current labour market situation it may be estimated that manual labour will become more expensive as several developing branches of industry (construction, infrastructure building, agriculture) need skilled workers. Due to this the production price will continue to increase and the importance of manual labour in the field of logging works will decrease.  As elsewhere in the world, the importance of logging made by machines will also grow in Estonia.