EU – Baltic States, Investments, Markets and Companies, Woodwork

International Internet Magazine. Baltic States news & analytics Friday, 02.05.2025, 06:23

Swedish Södra eyes Baltic forests as a source of income

Juhan Tere, BC, Tallinn, 24.09.2010.Print version
The Swedish forestry group Södra has in the past couple of years been quietly purchasing forest land in Estonia and in Latvia – the enterprise views its investments to the Baltic States as potentially very profitable, LETA/Äripäev writes.

The head of Södra Leiv Broden stated that the acquired property has already improved in value. “Profits haven’t been realised yet but the value is currently considerably higher than the price we paid when we bought it,” he said.

 

Södra group’s communications director Per Braconier said that the company started buying large amounts of forest in 2006 and has continued the activity since then. He added that by now the company has bought as much forest in Estonia as it planned and does not intend to buy more in the near future nor sell any.

 

If agricultural land is also added to the forests, Södra owns in Estonia 15,000 hectares of land. In Latvia it has 9,000 hectares. Södra owns land via two companies, Södra Metsad and Södra Mezs, which are in the books with value of 350 mln and 138 mln kroons.

 

Brodén believes that the company can increase the value of its investment by at least two times by the time it will start selling it.





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