SCA (Sweden) and Latvian Forest Company have signed a letter of intent for SCA to acquire 10,000 hectares of forest land in Latvia.

Latvian Forest Company owns and runs a number of forest farms in Latvia. The purchase-sum would amount to approximately SEK 260 million (EUR 26 million).

"We see the Baltic states as part of the base for SCA’s raw material supply", says Jonas Mårtensson, president, Latvian Forest. "We have already an organization for wood procurement in Estonia and Latvia and our operations will be further strengthened by a forest holding of our own."

The letter of intent is not binding for the parties.