The European Investment Bank (EIB) is lending EUR 170 million for the construction of a paper mill in Opatovice (Pardubice Region, Eastern Bohemia). The new mill will meet the increasing demand on European markets for paper for newsprint as well as for weekly magazines and inserts.

The mill's production will be based on a paper machine designed for a 10.5m-wide paper web running at a speed of 2 000m per minute with an annual capacity of 400 000 tonnes. As primary raw materials it will use mechanical pulp and clay and calcium carbonate filler, both from local sources, as well as imported chemical pulp. The new facility will create some 150-200 new permanent jobs directly and another 700-900 employment opportunities indirectly mostly in maintenance, wood sourcing, logistics and other services.

The paper mill will utilise modern, environmentally-friendly production technology and will be located close to an existing power plant from which electricity and steam will be supplied directly.

Myllykoski Group, a privately-owned Finnish group and a major newsprint and magazine paper producer in Europe, will borrow long-term EIB funds that will primarily benefit Labe Papir s.r.o., a Czech company that will implement the investment and run the plant.

Since 1990 the EIB, as the European Union's long-term financing institution, has provided more than EUR 7 billion for projects furthering European integration in the Czech Republic. The Bank supports foreign direct investments, as they contribute significantly to the modernisation of the economy by introducing new production technologies, create employment, increase the revenues of the state and lead to the application of new management methods.

Major previous EIB loans financing projects in this area in the Czech Republic include: TPCA Car Plant Kolin, new automotive research facilities and Skoda/VW Capacity Development.