07.02.2000, Trigon Property Development, TLN

VIISNURK

ANNOUNCEMENT

 

NEW PRODUCTION UNIT

 

The Supervisory Board of AS Viisnurk approved on 04.02.2000 the 

company's business plan to establish a new production unit.

 

New production unit will focus on production of lumber panels for 

furniture and building materials industry. New unit's planned 

annual output capacity is 16.500m³ of softwood panels, or 5.000m³ 

of hardwood panels. The new production unit will be among the 

Europe's largest of its type by output capacity.

 

According to the project, total volume of investments necessary for 

establishment of new production unit (incl. current assets) is EEK 

108.4 million. AS Viisnurk intends to use external resources to 

finance 80% of the project; the company has already started 

negotiations with credit institutions.

 

According to the business plan the production should start in the 

beginning of 2001; the installed output capacity should by achieved 

by year 2003 (annual net sales EEK 100-110 million). 

The new investment enables the company:

-to increase the company's production volume (turnover, profit) by 

50% within the next three years,

-expand the activities to new areas and products in wood processing 

industry,

-gain control over supply channels,

-provide high-quality raw materials, thus contributing to 

development of furniture production and enhancing the company's 

competitive potential.

 

 

Meelis Kukk

Managing Director

+372 44 78 323