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A Finnish company acquires 10,000 hectares of forest for €50 mln

Autor: Dragos Serban

Publicat la data de 20 Oct. 2008 in: Stiri

The Finnish Tornator company, specialized in owning and managing forests, has acquired some 10,000 hectares of forest land in Romania in 2008. (source - Business Standard)

Its portfolio could increase by a further 20,000 hectares in the coming years, according to a declaration for Business Standard by Henrik Nieminen, Tornator’s Chief Financial Officer. Nieminen did not indicate the value of the transaction, but sources close to the deal indicated that this amounted to some €50 million. According to available information, this acquisition in the Oituz area in Bacau county is the largest private investment in forest land in Romania.

“We will keep buying. We must see if we can find a reasonable price. We can acquire a further 10,000 or 20,000 hectares. We want to invest in forests, and subsequently sell wood to local producers,” added Nieminen. The company sells a portion of the trees, while planting others as replacements. According to Tornator’s official, the company owns 600,000 hectares of forest in Finland, forest land in Estonia, and Romania is the third country in Europe to which it has expanded its operation.

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“We considered all countries in Europe. Romania met two very important conditions: major forest land surfaces available and individual owners,” said Nieminen. Romania has 6.3 million hectares of forest land, of which 40 percent will belong to the state once the process is completed to return to rightful owners formerly nationalized forest land.

Autor: Dragos Serban

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