Estonia, Industry, Markets and Companies
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Thursday, 28.03.2024, 21:22
Swiss Asmer eyeing EUR 1bln methanol plant in Estonia
The newspaper has learned that the foreign investor behind
the project is Larkwater Group, an industrial group with global reach
headquartered in Geneva. Although not a lot is known about the group's
operations and background, according to the group's website it engages in the
manufacture and sale of industrial grade metals as well as brokerage of metals
and oil. The group has eight offices across the world and their annual sales
amount to 10 bn euros.
Larkwater has been on the lookout for a suitable location
for its plant for three or four years, with Latvia, Lithuania and Poland also
on its list of options. As things stand now, their preference is Paldiski,
which according to Larkwater board chairman Juha Mikkonen possesses a number of
advantages.
First, a terminal for liquefied natural gas (LNG) is planned
to be built in the area, and Paldiski is where the Estonia-Finland undersea gas
pipeline Balticconnector would link up to the ground-based gas network in
Estonia, providing a supply of natural gas, the raw material for
methanol.
As other advantages, the manager of Larkwater named
proximity to a deepwater port and the road and the railway network.
Mikkonen also had words of praise for Estonia's simple tax
system, first and foremost the practice of not taxing corporate profits.
According to him, the plant to be built in Estonia would be
the largest in Europe, producing 5,000 tons of pure methanol a day. Its annual
sales would amount to 800 mln euros.
Asmer, who has been preparing the large-scale investment for
the past year, told Postimees that as the first thing he went to convince the
West-Harju municipality, and only after that communicated with the managers of
the port company Tallinna Sadam and the railway infrastructure company Estonian
Railways, as well as government ministers.
"I have to say on a positive note that the attitude
thus far has been positive and favorable," Asmer said.