Metsä Wood, the wood products arm of Metsä Group, acquired an industrial land plot in Estonia, Pärnu city in the spring and is establishing a birch plywood mill there. The cornerstone of the new factory was laid in August. The new mill is due to start production by the end of 2018 and will create approx 200 jobs for Pärnu county. A construction agreement between Metsä Wood and Nordecon covers erection of a 29,000 m2 production plant with office premises. Total investment is approx 55 million euros.
Says Jari Tikkanen, Metsä Wood’s senior vice-president of production and technology: “Metsä Wood is investing in birch plywood production to better meet globally growing demand. The location of the new mill in Pärnu offers smooth logistical connections to our main markets. Birch veneers will be manufactured in Finland and converted into plywood at the Pärnu mill. This is a major investment in our competitiveness; birch plywood production capacity at the Pärnu mill will be 50,000 cubic meters annually.’
Building the birch plywood mill in Pärnu is part of Metsä Wood’s 100 million euro investment programme announced in June 2016. The programme is being executed in 2017-2018.
Sorainen Estonia advised Metsä Wood in acquisition of the land plot, including legal due diligence, preparing the transaction documents and construction agreement and in negotiations plus other legal matters. The client was advised by partner Pekka Puolakka and counsel Paul Künnap.