Baltic Pulp has selected a site for the proposed 600,000-tonnes-per-annum kraft pulp mill to be built in Latvia.


The site is in Ozolsala, near the town of Jekabpils in the eastern part of Latvia, about 130km south east of the capital, Riga.


"A number of sites were looked at, but the location of the forests, the road and rail network infrastructure made it a logistical choice," said Baltic Pulp managing director Jukka Laitinen.


The Jekabpils region is home to 60,000 people and has a 9% unemployment rate. The area is largely owned by the state.


Baltic Pulp was formed by Sdra, Metslitto and the Latvian Republic to look at the prospect of a new sulphate mill for the Baltic region in an investment totalling around 562m (e900m).


"When the mill has been given the green light it will make sense for us to look to recruit from the local region," said Laitinen.


He said that there was still plenty of work to do on the project, and the site would now be environmentally assessed.


If the decision of each project partners board is positive, work will commence on the mill in 2002 and it will come on-stream in 2005.


The mill will produce softwood and hardwood bleached kraft pulp, which will partly go to servicing Metslittos paper requirements, and partly to Sdra to be sold as market pulp.


Story by Andy Scott