On May 29, the new technology for growing plants, the respective production process, and the first results of plant production using this technology will be introduced by Eesti Metsataim Ltd. /Estonian Forest Plant/ at its production centre in Marana (the Pärnu County). The Estonian-Finnish joint enterprise Eesti Metsataim Ltd. has reached the first lot of production using a modern technology. In the first years, two million domestically grown transplants will be produced annually, from 2007 on the yearly production is expected to increase to six million. The Eesti Metsataim Ltd., established in the end of 2001, focuses on growing transplants for the reforestation of forest lands and planting of trees in former agricultural lands. According to Mr. Tõnu Reim, Head of Eesti Metsataim Ltd., demand for high quality forest transplants is continuously increasing. "The technology used by Eesti Metsataim enables us to produce a higher number of plants in a shorter period than previously. This will enable us to meet the increasing market demand in a relatively short time and speed up the forest cultivation process as well as increase its effectiveness," said Mr. Reim. Of the transplants produced by Eesti Metsataim, approximately 80% will be used in state-owned forests and 20% in private forests. In total, the State Forest Management Centre will need over 11 million transplants within 2003 for reforestation activities in state forests. To date, seedlings for planting into forests have primarily been grown in nurseries, however, this activity is both work- and time-consuming and dependent on weather. At Eesti Metsataim, the seedlings are grown in peat-filled pots in greenhouses. The transplants produced using the modern technology are called containerized seedlings. The new technology enables to produce a higher number of seedlings in a short period; besides, by using containerized seedlings its will be possible to extend the period suitable for planting forest. The share capital of Eesti Metsataim Ltd., established in November 2001, is 28.5 million Estonian kroon (equivalent to approximately 1.8 million EUR). The Republic of Estonia owns 60% of the shares; the remaining 40% belong to Forelia Oy - a profit-oriented company owned by the Finnish Forest Department. The total investment required according to the business plan of the plant production complex up to 2007 amounts to 67 million Estonian kroon (appr. 4.3 million EUR). According to the audited economic results of Eesti Metsataim Ltd., its losses in 2002 amounted to 1.3 million kroon. The production centre of Eesti Metsataim Ltd. is located in Marana, in the Pärnu County. For additional information please contact: Mr. Olav Etverk |
