VILNIUS - Several leading timber companies and furniture makers have submitted a proposal to the government for building a 200 million euro wood processing plant in eastern Lithuania. The investors, who presented their proposal to Prime Minister Gediminas Kirkilas on June 7, would build the new plant in the eastern district of Svencionys.
"The manufacturing of medium-density wood boards and home structures would be the core of the complex," Sigitas Paulauskas, the president of the Lietuvos Mediena (Lithuanian Wood) association, told the Baltic News Service.
Paulauskas said the Vakaru Medienos Grupe (Western Timber Group), Baltijos Baldu Grupe (Baltic Furniture Group), SBA and other companies intended to invest in the project.
Most of the funds would come from banks, but there could be equity investment as well, he said.
The project would also include a plant for insulation materials, a sawmill and other facilities.
"This complex will help enhance the long-term competitiveness of the Lithuanian wood industry. The country will manufacture products it now imports and thus create a higher value added," said Paulauskas.
The target deadline for launching the complex's key production facilities is 2009, he added.
In the first three months of 2007 Lithuania has managed to boost exports of furniture and other wood products to 357 million euros, a surge of 21.7 percent year-on-year, according to Baltijos Miskai ir Mediena (Baltic Forests and Timber), an industry magazine. Furniture exports grew 20.5 percent to 590 million litas (171 million euros).
In the meantime, imports of both categories also grew, according to the magazine. Imports of wood products increased 26.8 percent to 779.1 million litas, while furniture imports jumped 31.6 percent to 233.5 million litas.
Exports of paper products increased 19.1 percent to 114.6 million litas, while imports grew 18 percent to 242.8 million litas.
