About Slovenian State Forests (SiDG)

Slovenski državni gozdovi d.o.o.

A: Rožna ulica 39, 1330 Kočevje - Slovenia

E: info@sidg.si

The Republic of Slovenia is an owner of 236,000 ha (year 2024) of forests, i.e. approximately 20% of all forests in the territory of Slovenia. State forests cover almost 12% of the Slovenian territory (Figure 1). After 20 years of concessions in the state-owned forests, the Republic of Slovenia established the Slovenian State Forests company (Slovenski državni gozdovi, d.o.o. - SiDG) with the purpose to manage the respective forests. The company was founded based on 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 22,440,000.

Figure 1: State owned 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.

 

Our operating principles are based on:

• Sustainability is the cornerstone of our work. This principle helps us to preserve forests for future generations and to ensure the stability of forest yields by respecting the forest as an ecosystem.
• Through sustainable management, we guide forest development, maintain biodiversity and strengthen forest ecosystems by mimicking natural processes in the development of forest ecosystems.
• Multifunctional forest management ensures that forests are not only a source of raw materials, but also have ecological and social functions or provide ecosystem services to society.

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We promote the processing and treatment of wood and the development of the domestic wood industry, which is our main business partner.

SiDG also has certain public powers; we contribute to increasing the volume of forests owned by the Republic of Slovenia and to regulating ownership relations with other stakeholders.

 

Vision

We want to become a model of excellence in Europe in terms of preserving and improving the economic, social and ecological functions of forests and wood.

 

Mission

We will manage forests in a sustainable manner, using the best practices and modern technologies for management and process control, in a way that increases the added value of wood and the return to the owner and the environment.

SiDG is the parent company of the SiDG Group, which consists of:

• the wholly-owned subsidiary Snežnik d.o.o.,
• the wholly-owned subsidiary Sinpo, d.o.o., a wholly-owned subsidiary of SiDG.

 

The core business of Snežnik is wood processing (production of sawn timber and biomass, sawmilling of logs and purchase of timber from private forests).

Sinpo was established to employ workers with reduced working capacity. The main activity of this company is the provision of forestry services and ancillary activities within the SiDG group.

An average growing stock of state forests is 324 m³/ha. Prevailing tree species in state forests are beech (37%) and spruce (30%). Other tree species with a significant share are fir (12%) and oak (4%). The remaining share includes noble deciduos species (6%), hard deciduous species (5%) and minority tree species (6%) (Figure 2).

Figure 2: Representation of tree species (ZGS, 2020)

 

 

SiDG holds FSC and PEFC certificates for all its forests. SiDG is certified under the SURE-EU scheme for sustainable forest biomass.

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.

Forestry activities include

• Logging, skidding and transportation of forest wood products,
• Construction and maintenance of forest infrastructure,
• Silvicultural and protective works and other tasks for providing all forest functions,
• Certification (FSC and PEFC),
• Participation in EUSTAFOR,
• Active participation in forest management planning,
• Execution of all necessary and planned works in state forests.

 

Sale of forest wood products and logistics include

• selling of forest wood products from state forests,
• organizing the transport of wood products from the state forests.

 

Real estate management and acquisition of forests includes

• Transactions related to forests (purchase, sale, trade, division) and unpaid transfers of forest ownership,
• Establishment of easements, rights of encumbrance and rights of superficies in state forests,
• Issuing permits for leasing of state forests or leasing of buildings in forests.

 

The wood processing activity is based on the primary processing of wood at the subsidiary company Snežnik d. o. o. (https://sneznik.si/)

The bodies of the company

The bodies of the company are the General Assembly, the Supervisory Board, the Management Board and the Board of Experts.

The Slovenian Sovereign Holding (https://www.sdh.si/en-gb/) performs the duties and has the powers of a General Assembly.

The Supervisory Board consists of 6 members, of which 4 representatives are appointed by the General Assembly (the Management Board of the Slovenian Sovereign Holding) and 2 representatives are elected by the Works Council of the company.

The Management Board consists of 2 members - Chief Executive Officers (CEO).

The Board of Experts consists of 10 members. The Board of Experts serves as an advisory body to the Management. (Articles of Association of SiDG)

SiDG has 5 business units: Kočevje, Novo mesto, Postojna, Ljubljana and Maribor. The business units perform the main operational tasks in the field of forestry and sales. Each business unit is further subdivided into forestry units. There are 35 forestry units in total.

 

Most of the work in state forests (harvesting, silvicultural and forest protection work, work for other forest functions, construction and maintenance of forest infrastructure) is subcontracted through public tenders. Part of the harvesting and transportation is carried out with own capacities, while most of it is subcontracted through public tenders.

 

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

• harvesting,
• silviculture and forest protection,
• timber transportation,
• forest construction (construction of forest infrastructure).

CONTACT:

E: prodaja@sidg.si

 

The forests owned by the Republic of Slovenia are an important and undoubtedly the most reliable source of raw material for forest-based industries, although state-owned forests represent only 20% of the total potential of all Slovenian forests. 

 

Wood from the state forests can be sold in 4 ways:

Public auctions

All forest products that SiDG does not sell through public tenders for long-term sales contracts and direct sales are sold at public auctions. Forest wood products of a quality, quantity and starting price determined by SiDG are sold at auctions. The forest products are sold to the bidder offering the highest price from the warehouse to which the wood is transported. All bidders can participate in public tenders. 

Public tenders

In this case, short-term contracts are signed for the sale of forest wood products. As with public auctions, all forest products that SiDG does not sell through a public tender for long-term sales contracts and direct sales are sold in this way. In this type of sale, the quality and quantity of the timber is determined during the transport of the timber by truck. The forest products are sold to the bidder offering the highest price on the road. Public tenders are open to all bidders. 

Direct sales

Direct sales are the second most important sales method. It is used for the sale of quantities of timber in excess of contractual obligations under other sales methods, for the sale of items not sold under other sales methods, and for the sale of stumpage.

Long-term contracts

This is the main way (through which SiDG sells most of its timber) of selling wood products from state-owned forests. SiDG encourages and provides stability in the supply of logs to the wood processing industry by entering into long-term contracts. Contracts can only be signed with buyers who can demonstrate that they will process all the timber supplied, which is also verified by SiDG. The selling price of timber under long-term contracts is based on market prices. Exceptionally, SiDG can also sell wood at the stump.