OREANDA-NEWS. October 07, 2009. The Swedish industrial group Trelleborg is planning to invest about 100 million kroons (EUR 6.4 mln) in expanding its moulded rubber and metal products plant on the Estonian island of Saaremaa.

The regional newspaper Oma Saar, which reported about the plan, said 230 new jobs would be created and a fully new building erected.

However, the company wants to get rights of edificies for the property in Pikk Street 62f for 30 years before the project in the Estonian island capital is launched.

The state put the piece on land up for auction in mid-September. Last week, Trelleborg Sigma AB executive Mikael Fryklund sent a letter to Estonia's Environment Minister Jaanus Tamkivi asking to halt the auction and rent the piece of land to the company instead.

It stood on the web page of the Estonian Land Board on Thursday that the auction has been canceled.

Kuressaare Vice Mayor Kalle Koov told Oma Saar that a joint delegation of Enterprise Estonia and Trelleborg visited the town government in mid-September.

The topic discussed was Trelleborg's interest to expand its operation in Kuressaare and build an annex to the plant building completed in 2007.

"The town of Kuressaare has expressed its readiness to provide allround help to Trelleborg in its expansion," Koov said.

The town government on September 29 decided to satisfy Trelleborg's request from September 25 to initiate a detailed plan for the plot situated in Pikk Street 62e that would foresee expanding the present production facility.

Kalver Kirs, manager of Trelleborg Moulded Components Estonia, told the paper that the management of Trelleborg will not offer its comments concerning the expansion plan before October 19.