Lasy Panstwowe (LP), the national forest holding, ended 2002 with sales of ZL3.5bn and revenue of ZL15m, according to preliminary estimates. After observing losses of ZL82.8m in 2001, the company began a restructurisation programme, which included lowering administrative costs, freezing wage levels and introducing a new collective work agreement. By increasing the sales volume to 25 million square metres last year, LP made a profit despite a 10-15 percent decrease in wood prices. In 2003, the company will keep the price level, but hopes to increase sales by another 0.5m square metres. Janusz Dawidziuk, the director of LP, believes that the new sales system introduced in 2002 is functioning well, ending a period of troubled relations with the wood industry. Export plays an ever greater role in LP's sales structure, with both export possibilities and its rentability steadily increasing.