Establishment


The Republic of Slovenia is an owner of 235,000 ha of forests, i.e. approximately 21% of all forests in the territory of Slovenia (Figure 1). After 20 years of concessions in the state-owned forests, the Republic of Slovenia established the Slovenski državni gozdovi d.o.o. company (SiDG) with the purpose to manage the respective forests. The company was founded on the basis of the Management of State Forests Act (ZGGLRS). The SiDG company was established on 17 March 2016 by the Articles of Association of Slovenski državni gozdovi, d.o.o. (Articles of Association of SiDG). It began to pursue the respective activity on 1 July 2016. Its registered office is in Kočevje. The share capital of the company is EUR 22,400,000.

 

Figure 1: Forests managed by SiDG

 

The main objectives of managing state-owned forest are the following:

  1. Taking into account the principles of sustainable, multifunctional and forestry compatible management of state forests to achieve the highest possible rate of return and quality of timber assortments.
  2. Contribute to the establishment and development of forest wood chains, promotion of timber and timber products and creation of green jobs.
  3. Increase the area of state forests in the long-term.
  4. Contribute to the achievement of the objectives of rural development, in particular the preservation of agricultural and rural development in mountainous regions with limited management possibilities.
  5. Contribute to the achievement of objectives to preserve nature, in particular the objectives of Natura 2000 areas and protected areas.
  6. Provide training of professional staff and support education and scientific-research work in the fields of forest, forestry and wood processing.
  7. Implement the sale of standing timber to a minimum extent (Management of State Forests Act).

 

 

Description of state forests


SiDG manages 235,000 ha of forests. An average growing stock of state forests is 321 m3/ha. Coniferous and deciduous trees represent 48% and 52% of the growing stock, respectively. Prevailing tree species are beech (36%) and spruce (32%). Other tree species with a significant share are fir (11%) and oak (4%). The remaining share includes noble deciduous species (6%), hard deciduous species (5%) and minority tree species (6%) (Figure 2). The total growing stock of state forests is approximately 80.5 million m3, while the annual increment is about 1.85 million m3. The gross annual harvest is around 1.5 million m3.

 

 

Figure 2: Representation of tree species

 

State forests cover almost 12% of the Slovenian territory. They also include 5,996 ha of forest reserves and 21,637 ha of protection forests. Commercial forests, primarily managed for timber harvesting, prevail. SiDG is also a holder of FCS and PEFC certificates for all respective forests. In recent years, in addition to natural disasters (wind storm, ice storm, snow storm), the biggest threat to forests have been insects (in particular spruce bark beetle) which are also the most frequent reason for sanitary felling. In average, the sanitary felling in state forests is approximately 25% of the total cut. In different years it ranges between 10 to 48% of the total cut.

 

 

Activities

 

The main activities pursued by SiDG are forestry, sale of forest wood products and logistics, management of real estate and acquisition of forests, wood processing and other activities for developing all other forest functions. Individual activities are described below in detail.

 

The forestry activity includes:

  • Logging and skidding and transport of forest wood products,
  • Construction and maintenance of forest infrastructure,
  • Silvicultural and protection works and other tasks for providing all forest functions,
  • Certification (FSC and PEFC),
  • Participation in EUSTAFOR,
  • Active cooperation in forest management and growing planning,
  • Executing all required and planned works in state forests.

 

The sale of forest wood products and logistics include:

  • Selling of forest wood products from state forests,
  • Organising the transport of wood products from state forests.

 

Real estate management and acquisition of forests comprises:

  • Transactions related to forest (purchase, sale, trade, divisions) and unpaid transfers of forest ownership,
  • Instituting easement, establishing rights of encumbrances and rights of superficies in state forests,
  • Issuing consents for state forest leasing or leasing the buildings in forest.

 

The wood processing activity includes:

  • Primary wood processing (Snežnik d.o.o., a subsidiary),
  • Contributing to the establishment and development of forest wood chains by establishing centres for wood collecting and processing.

 

In 2018, through all activities, SiDG generated EUR 76.9 million of revenue, of which EUR 14.3 million pre-tax earnings. A total of EUR 14.57 million was paid to the forest fund in 2018.

 

 

Organisation


Company’s bodies are assembly, supervisory board, management and expert panel. The Republic of Slovenia performs tasks and has competence of an assembly. The Supervisory board consists of 8 members, of which 5 representatives are chosen by the Republic of Slovenia while the company’s employees appoint 3 representatives. The management comprises 2 members, namely managing director and director of finance, accounting and controlling. There are 10 members in the expert panel. The expert panel serves as an advisory body for the management (Articles of Association of SiDG).

The company is divided to 6 divisions. Divisions cover fundamental activities pursued by the company. The main areas are forestry, sales and logistics, and hunting. However, the latter has not started to perform its tasks yet. Supportive divisions include the fields of finance, real estate and general affairs. At the top of the organisational structure there is the management which covers the fields of information technology, public relationships and internal audit (Figure 3).

 

 

Figure 3: Organisational chart of SiDG

 

On 1 January 2019, the company had 239 employees. The majority of them perform work in the forestry division, which has 4 business units: Kočevje, Postojna, Ljubljana and Maribor (Figure 4). Each business unit is further divided to forestry field units. There are 30 forestry field units in total. Each forestry field unit is managed by a foreman who gives direction to the work of 2 or 3 scalers of forest wood products (Figure 3). Business units conduct main operational tasks in the field of forestry.

 

 

Figure 4: Territorial organisation of SiDG

 

 

 

Subcontracting


The majority of works (harvesting, silvicultural and forest protection works, works for other forest functions, construction and maintenance of forest infrastructure) in state forests is subcontracted through public calls for tenders. Calls for tenders are designed to require framework agreements. Framework agreements currently apply for the period from 1 to 2 years. Only a part of harvesting and transport is currently carried out by own capacities, while the rest is subcontracted through public calls for tenders. Calls for tenders have two stages. In the first stage, all qualified contractors (tenderers) with adequate capacities (signing a framework agreement) are selected. The second stage includes applying for calls for tenders for actual projects, for which the contractors then bid on. A certain call for tenders may also include several different work sites, i.e. lots.

There are 4 framework agreements for subcontracting, i.e.:

  • Harvesting,
  • Silvicultural and forest protection (GVG),
  • Wood transport,
  • Forestry construction.