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Tartu or Pärnu: Metsä Wood still undecided on location of new plant

Metsä Wood factory in Finland.
Metsä Wood factory in Finland. Source: (

Finnish wood company Metsä Wood has signed a letter of intent to buy 10 hectares (25 acres) of land in the Southwestern Estonian city of Pärnu but remains undecided on where in Estonia it will end up building its new 50-million-euro plywood factory, which is expected to employ up to 200.

"The final decision about the plant's location has not yet been made; we just signed a preliminary agreement on the purchase of industrial land, nothing more" Metsä Wood Group CEO Esa Kaikkonen told BNS, adding that Metsä Wood had not yet chosen between Pärnu and the Southern Estonian city of Tartu.

Kaikkonen had told BNS in July that Metsä Wood was in negotiations over the building of a new 50-million-euro plywood mill in either the Pärnu or Tartu region of Estonia and expected to have it running at full capacity with a workforce of approximately 200 by the end of 2018.

Kaikkonen said that the company was holding talks to determine whether to establish the facility near Pärnu or Tartu.

"We'll start construction after we've solved logistical and infrastructure problems and received the building permit," said the Finnish company's CEO. "Furthermore, it is important to us for the Estonian government to look over our investment plan and give it a positive response."

Editor: Editor: Aili Vahtla

Source: BNS

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