Estonia prepares for building 1 billion euro plant.
The group of investors who is planning to build a wood refining plant in Estonia by 2022 worth one billion euros is to start preparing for building the plant already at the start of 2017 and preparations might take up to three years.
Although there are large timber supplies in Estonia and the Baltic countries as a whole, at present most of pulpwood and wood chips are exported from Estonia without added value, Margus Kohava, board member of a holding enterprise set up by the investors, Est-For, said.
The investment is worth around one billion euros, which is the biggest industrial investment in the history of Estonia, Kohava said. The planned factory would have Europe's most modern technology which would have the minimal possible impact on the environment.
According to the entrepreneurs the new factory should have a positive impact on Estonia's exports and economic growth. The direct added value created by the factory would be up to 350 million euros a year, which amounts to 1.4-1.8 per cent of Estonia's gross domestic product.
The factory would export its own produce worth 320-420 million euros a year, which would increase Estonia's exports by 250-350 million euros a year. The export value of Estonian products would grow 2-3 per cent.
The plant should directly create 200 new jobs, and in addition in the whole value chain 500-700 people should find work. The factory's production capacity would be 700,000 tons and timber that is consumed as raw material would be 3 million cubic meters a year. "The exact size of the plant hasn't been decided yet," Kohava said. The factory would produce cellulose, hemicellulose and lignin which could be used to produce different bioproducts.
Est-For Invest OU was set up in October and its owners include forest and wood processing group AS Lemeks, Caspar Re OU, holding enterprise belonging to businessman Peeter Mand, Ivard OU, Kaamos Group OU, OU Combiwood and OU Tristafan. The real beneficiaries of the company are entrepreneurs Mati Polli, Tiit Nilson, Peeter Mand and Kaido Joeleht, who each own 16.67 per cent of the company, and Juri Kulvik who owns 12.97 per cent.
|Printer friendly Cite/link Email Feedback|
|Title Annotation:||BALTIC NEWS|
|Publication:||The Baltic Times (Riga, Latvia)|
|Date:||Jan 12, 2017|
|Previous Article:||Costume parade on Sherlock Holmes' birthday draws crowd in Riga.|
|Next Article:||Government approves bill on defense cooperation between Latvia and US.|