Latvian plywood producer Latvijas Finieris has established a subsidiary Kohila Vineer in Estonia and acquired from SEB Liising the assets of the Kohila birch processing plant that stopped operating in 2008.

The Riga-base company said that it planned to resume production at the facility at a new level, using the available wood resources and creating around 70 jobs within three years.

It also plans to invest €17m in the mill during the same time frame, upgrading to meet the latest technology standards – manufacturing of high-value products, while also saving wood and energy resources.

Estonia’s Tallinn region has a long tradition of processing birch, said Latvijas Finieris; historical sources reveal that the world’s oldest veneer plant was established in Tallinn in the second half of the 19th century.

“By successfully transferring the best experience to Estonia, Latvijas Finieris has a chance to strengthen the company as a leading birch plywood producer in the Baltics and improve the position to represent the joint interests of Estonia, Lithuania and Latvia in the global market,said Latvijas Finieris ceo Uldis Biķis.