OREANDA-NEWS. September 28, 2010. The joint-stock paper producer Liepajas papirs will open a new paper mill in Belarus at the beginning of 2011, to which part of the company's facilities in Liepaja will be moved, as The Baltic Course reported.

"We have been cooperating with a Belarusian company for over a year, business has been developing successfully, therefore, we feel that we have to take another step forward," said Liepajas papirs board chairman Janis Vilnitis, adding that formalities were being dealt with at the moment so Liepajas papirs could establish a joint venture with the Belarusian side.

Belarus, which many consider to be a police state, is nevertheless a stable country with clear rules for everyone, Vilnitis explained. Liepajas papirs plans to produce its least expensive products in Belarus, production of which is not cost effective in Liepaja anymore, and which are mostly sold in Russia, Belarus and Kazakhstan. These three countries have a common market, therefore Liepajas papirs will not have to pay customs duties.

The new venture's production volumes are expected to reach Euro 70,000 in the first six months next year.