Kaamos Timber and the EBRD entered into a 15 million euro loan agreement for the establishment of a sawmill in Belarus.
The Estonian wood industry company
Kaamos Timber entered into a loan agreement with the European Bank
for Reconstruction and Development (EBRD) whose support will be used
to establish a new sawmill owned by the Estonian company near the
city of Mozyr in Belarus.
“The EBRD loan of 15 million euros will finance the construction of a new sawmill in the city of Mozyr, the total investment of which is planned to be 25 million euros,” said Tõnu Bergmann, executive manager of Kaamos Timber, adding that the term for the loan agreement is 7 years.
According to Bergmann, the Mozyr sawmill owned by Kaamos Timber will create one hundred new jobs in the area and will almost double Kaamos Timber’s existing production capacity in the Belarusian wood industry. The 15 million euros borrowed by Kaamos Timber is part of the 25 million euro investment planned.
“Our existing sawmill in Vitebsk produces nearly 250,000 m3 of softwood timber, and with the new factory, the total production volume will increase to nearly 450,000 m3,” said Bergmann.
Today, Kaamos Timber supplies timber to not only the Baltics but also to Central Europe and Asia. “Production volume to be increased by nearly a half will certainly allow us to increase export to both Europe and Asia,” Bergmann hopes.
The EBRD has been cooperating with the company for more than four years and has helped to successfully grow the sawmill in Vitebsk.
Kaamos Timber was advised by the Law Office Sorainen in entering into the EBRD agreement.