Horizon Pulp & Paper

completed

Summary Of Project Information (SPI)Project NameEstonia-Horizon Pulp & Paper     RegionEuropeSectorProject No008128Projected Board DateJune 26, 1997Company NameHorizon Pulp & PaperTechnical Partner and/or Major Shareholders Asean Interests Ltd. (Hong Kong) -- an investment arm of the Tolaram Group of Companies (Singapore) owns 100% of the shares of Horizon Pulp & Paper. Project Cost Including proposed IFC investment US$ 20.1 million, including an IFC A loan of US$4.5 million and a equity investment of US$1.5 million.Location of project and Description of site Horizon Pulp & Paper mill is located in Kehra, Estonia, approximately 50 km from the capital, Tallinn. The paper mill was constructed in 1938 and upgraded over the years to produce 48,000 tons per year of unbleached kraft paper. Description of Company and Purpose of Project This project is the rehabilitation and modernization of Horizon Pulp & Paper Company, the only large paper company in Estonia. The investments planned under this project are targeted to bring the company into compliance with the World Bank environmental standards, improve the quality and efficiency of the current unbleached kraft paper and sack production, and introduce limited tissue products. This project will promote the development of a higher value added export oriented industry based on a local raw material which makes a significant contribution to the long-run sustainable development of the Estonian economy. Estonia is a small country with few natural resources and a relatively small industrial base. Timber, pulp and paper is one sector of clear comparative advantage for the country due to the relatively abundant and low cost local raw material. However, due to the collapse of the markets and economies of the former Soviet Union (FSU) combined with the capital intensive nature of these industries and lack of local capital, the Estonian paper industry collapsed completely in the early 1990’s. As a result, currently the majority of harvested forest is exported in the form of uncut logs. Environmental Category and Issues This is an environmental review category B project. The environmental, health and safety issues include forest management and sustainibility of wood supply, effluent discharges, air emissions and solid waste disposal. The project includes an environmental investment element which targets to improve the effluent quality of the overflow water from the landfill used for the disposal of lime sludge ash and to reduce project air emissions. The is from the Public Information Center.Date SPI sent to PIC May 14, 1997For Additional Information contact: Corporate Relations Unit -telephone: (202) 473-7711facsimile: (202) 974-4384Environmental documents for this project are available at http://www.ifc.org and from the World Bank InfoShop (http://www.worldbank.org/html/pic/aboutinfo.html).