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EBRD financing helps Estonia's forestry industry to grow
A loan of DM 10.0 million (EUR 5.1 million) from the European Bank for Reconstruction and Development (EBRD) to AS Imavere Saeveski will finance another capacity increase at the largest sawmill in Estonia. This follows a loan of DM 13.8 million (EUR 7.1 million) signed by the EBRD in December 1997.
"This second EBRD loan to Imavere Saeveski will provide long-term financing to support the further technical development of the company and the wood-processing industry in Estonia," said Urmas Paavel, Head of the EBRD’s Resident Offices in the Baltic States. "Given the excellent performance of the company under the first project, the EBRD was able to process the new loan facility on an accelerated schedule."
The proceeds of the loan will be used to increase the production capacity of Imavere Saeveski’s second saw-line. It will finance the installation of a new fully computerised component line, which will allow the company to extend its production to higher value added products. It will also lead to better utilisation of the lower-quality redwood pine.
Founded in 1994, Imavere Saeveski is the largest and one of the most modern sawmills in Estonia. As a result of the first project, which was co-financed with Hansapank and Optiva Bank, the company’s annual output was almost trebled to about 200,000 m3 of sawn wood. Imavere is the largest exporter of sawn wood in Estonia.
The forestry and wood processing industry is the third-largest industry in Estonia, accounting for 13 per cent of total industrial output. Timber and wood products are Estonia’s leading exports, constituting 12.6 per cent of the total export market. Most of the wood products exported are destined for west European markets. There are some 360 sawmills in Estonia, with the 15 largest accounting for 50 per cent of total output.
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