The Austrian and Finnish state forest enterprises, ÖBf AG and Metsähallitus, are embarking on a joint venture for timberland management services in central and eastern Europe.
The new company, Foria-ÖBf GmbH, plans to be one of the region’s leading players in timber and timberland management by 2007, with an expected annual turnover of about euro45m.
It will offer services to large-scale forest owners, including states and communes, in countries such as Romania, Poland and Ukraine. Services will vary from timber trading to total timberland management including silviculture and harvesting.
A level of one million m3 is targeted for timber sales, with wood being delivered to local sawmills and international companies. Forest management will be based on the principle of sustainability.
Georg Erlacher, managing diector of the Austrian ÖBf, said: “The markets in this region are expected to grow faster than elsewhere in Europe, forest industry investments are expected to increase and there is good potential to develop forest and timber management practices.”
Foria-ÖBf’s registered office is in Austria. Offices in target countries are planned to start opening during the year.
