Industrial development in the Lake Ladoga area was largely predetermined by the demand of St. Petersburg. Hence, an important part in the industry is played by the sectors providing for the complexes of the St. Petersburg economy (pulp-and-paper mills (PPM), hydropower plants (HPP), non-ferrous metallurgy, wood-working complexes). Simultaneously, light and food industries are of local importance, their products are distributed chiefly within the region.
A typical feature of the industry is the dominance of the sectors designed to work on local raw materials. The total number of enterprises in the productive and non-productive spheres, and of different ownership types, is shown in Tab. 7.2.1. The table demonstrates the low share of state-owned enterprises in this part of the area.
Industry in the Lake Ladoga districts of Karelia is far less developed than in the Ladoga districts of the Leningrad region (Tab. 7.2.2). Only one fifth of the able-bodied residents of the oldest and largest town of Karelian Lake Ladoga area - Sortavala, works in the industry. In another Karelian district - Lahdenpohsky, industry is even less developed making up just 0.6% of the republic's production. As a typical example the largest enterprise in the district - "Veneer factory" stock company can be mentioned: it had worked successfully before 1996, but was closed for a long period of time after the main stockholding was purchased by Finnish companies.
Table 7.2.1.Number of enterprises of the productive and non-productive spheres in the Ladoga districts of the Leningrad region
Number of enterprises of the productive and non-productive spheres
Municipality
Total
Priozersky district
Vsevolozh- sky district
Kirovsky district
Volkhov- sky district
town of Volkhov
Lodejno- polsky district
Private property
1353
2496
1202
794
423
464
6742 (91.2%)
State property
115
307
98
68
27
41
656 (9.8%)
Всего
1468
2803
1300
862
450
505
7388
Table 7.2.2. Number of enterprises of the productive and non-productive spheres in the Ladoga districts of Republic of Karelia
Number of enterprises of the productive and non-productive spheres
The current economic situation at most enterprises can be described as stable, though not more than 40-50% of the design production capacities are exploited. Steadily working are enterprises of the logging, wood working, food industries and power engineering.
The areas facing the most serious economic problems are Ladoga districts of Karelia. The general cost-efficiency index of enterprises, defined as the ratio between profit from sales and the cost of manufacturing the product, is negative there:
Pitkarantsky district -14.3%
Sortavalsky district -14.5%
Lahdenpohsky district -30.2%
Olonetsky district -14.2%
Another characteristic feature in the development of the region in general was that historically it was industrial enterprises that shaped the development of administrative formations, which were linked to a major industrial enterprise. Examples of municipality-forming enterprises in the Lake Ladoga area are:
Priozersky pulp-and-paper mill (Priozersk);
Kirovskaya HPP (Kirovsk);
Volkhovsky aluminium smelter (Volkhov);
Syassky pulp-and-paper mill (vil. Syasstroi);
Pitkarantsky pulp-and-paper mill (Pitkaranta).
In the past municipality-forming enterprises supported all the social and engineering infrastructure for the population (water treatment facilities, sewage treatment facilities, boiler houses, etc.). Recently however, there appeared a clear tendency for these activities to be made a responsibility of municipal authorities, that are lacking necessary resources to handle new functions.
