French investor puts €1 million into Lääne-Viru County wood plant
The France‑based company Puidukoda has invested €1 million in its production facility in Näpi, Lääne‑Viru County. But Estonia's geopolitical location is making such investments increasingly difficult to attract.
Puidukoda has been operating in Näpi for three years. The company expanded to Lääne‑Viru County after Finnish company Stora Enso scaled back production in Estonia and closed their Näpi plant.
Puidukoda chose Näpi because ports are nearby and there is room to expand. So far everything has paid off, but recently it has become harder to justify investing in Estonia to the French owners, said chief executive Eveli Opmann.
"Our geopolitical location has already become less favorable than it was before the war in Ukraine. In other words, we are, figuratively speaking, at the end of the world," Opmann said.
Another factor, partly related to the war, is that Estonia's overall economic environment has become more negative for investors. Energy prices, labor costs, input prices and transport costs have all increased.
To stay competitive, Puidukoda acquired a €1 million autoclave for Näpi, which will be used to impregnate wood.
"The entire wood sector is moving toward higher value‑added products. This device we invested in helps increase the value of wood. Wood in contact with the ground begins to rot in about two years, but when it is impregnated, that can take 20 to 30 years," Opmann said.
Infrastructure Minister Kuldar Leis said such investments show that Estonia's wood industry companies are looking for ways to develop.
"Even if this market fluctuates, we must continue developing what we are strong in."
Puidukoda employs 130 people. About twenty of them work in Näpi, where the company has invested a total of €5 million.
--
Editor: Märten Hallismaa, Argo Ideon
