With the Estonian economy contracting for the ninth quarter in a row, the bioproducts plant planned by Viru Keemia Grupp would be a welcome boost to the gross domestic product. Despite the scale of the project, the main challenges are sourcing raw materials within Estonia and attracting bank financing. :format(webp)/nginx/o/2024/08/13/16288573t1h3ceb.jpg)
Viru Keemia Grupp's Bioproduct Development Manager Lauri Raid says the new plant will create around 1,000 jobs and generate more than €150 million in tax revenue. Photo: Sander Ilvest
With the Estonian economy contracting for the ninth consecutive quarter, the bioproducts plant planned by Viru Keemia Grupp would be a welcome boost to the gross domestic product. Despite the scale of the project, the main challenges are sourcing raw materials within Estonia and attracting bank financing .
Translation: Eva Oyzhynska
Viru Keemia Grupp (VKG) has been planning to build a bioproducts plant in Lüganuse Parish, Ida-Virumaa, for several years now. When the plan was first presented in 2021, the plant was expected to cost 800 million euros. Now, three years later, inflation has made its adjustments, and the plant's investment needs have increased to a round billion euros.
