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International Internet Magazine. Baltic States news & analytics Monday, 01.06.2020, 19:45

Estonia's Kaamos Timber to build 2nd sawmill in Belarus for EUR 25 mln

BC, Tallinn, 03.04.2020.Print version
Estonian wood industry company Kaamos Timber has secured a loan of 15 mln euros from the European Bank for Reconstruction and Development (EBRD) to build a sawmill in the town of Mozyr in Belarus for 25 mln euros, informed LETA/BNS.

Kaamos Timber CEO Tonu Bergmann said in a press release that the total size of the investment is 25 mln euros and the maturity of the loan of 15 mln euros from the EBRD is seven years.

Bergmann said that the new sawmill of Kaamos Timber will bring 100 new jobs to the Mozyr region and enable to almost double the output of Kaamos Timber's wood industry in Belarus.

"Our current sawmill in Vitebsk produces some 250,000 cubic meters of sawn softwood a year. With the addition of the new plant, production volume will rise to nearly 450,000 cubic meters," Bergmann said. 

Kaamos Timber at present supplies sawn timber to the markets of the Baltic states, Central Europe and Asia. The near doubling of output volume will definitely enable it to increase exports to both Europe and Asia, Bergmann said. 

The EBRD has worked with Kaamos Timber for more than two decades and successfully implemented a similar project in the town of Vitebsk, in north Belarus.

Kaamos Timber was advised in the conclusion of the contract with the EBRD by Sorainen law office.

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