OREANDA-NEWS. June 01, 2011. Latvijas Finieris has established a subsidiary Kohila Vineer in Estonia which acquired from SEB Liising the assets of Kohila birch processing plant that stopped operating in 2008. The goal of the acquisition is to resume the activities of the factory at a new level, using the available wood resources and creating around 70 workplaces for local people in the nearest 3 years, as the company said in a press release received by Lesprom Network.

Factory will be subject to reconstruction in order to meet the latest technology standards – manufacturing of high-value products, while also saving wood and energy resources. Moreover, the factory will require highly skilled labour, therefore personnel preparation and training will be of key importance. Total investments in 3 years will reach Euro 17 million.

Implementation of this project will be beneficial for Latvijas Finieris as well – existing 5 factories in Latvia and one in Lithuania will be joined by an Estonian factory, thereby enhancing the conversion of Baltic birch resources into valuable products and providing wider alternatives for further product development.

“For the wood processing industry in Estonia and economic development of Kohila the transaction is essential and we are glad that buyer will put a new life to the production,” said representative of SEB Liising Ainar Leppanen.

“By successfully transferring the best experience to Estonia, Latvijas Finieris has a chance to strengthen the company as a leading birch plywood producer in the Baltics and improve the position to represent the joint interests of Estonia, Lithuania and Latvia in the global market,” accent Uldis Bikis, CEO of Latvijas Finieris AS.