French Investor Puts €1 Million into Wood Plant in Lääne-Viru County
France-based company Puidukoda has invested €1 million in an autoclave for wood impregnation at its production facility in Näpi, Lääne-Viru County. However, CEO Eveli Opmann notes that Estonia's geopolitical position has made attracting such investments increasingly difficult since the war in Ukraine.
French investor Puidukoda has invested €1 million in an autoclave for wood impregnation at its plant in Näpi, Lääne-Viru County, where the company has been operating for three years. The facility was chosen because of its proximity to ports and expansion potential, after Finnish company Stora Enso scaled back production in Estonia and closed its Näpi plant.
So far the investment has paid off, but recently it has become harder to justify investing in Estonia to the French owners, said CEO 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, with increases in energy, labor, input, and transport costs.
The new autoclave will help add value to wood products. "The entire wood sector is moving toward higher value-added products. This device 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 explained.
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 20 of them in Näpi, where the company has invested a total of €5 million.
