Public enterprise "Macedonian Forests" and Slovak company "Holz Consulting" signed Tuesday a cooperation memorandum over the production of pellets, an investment worth EUR 10 million and opening of 500 new jobs.

Deputy-Economy Minister Hristijan Delev said this cooperation is part of the ministry's initiative for attraction of foreign investors.

"The pellets will be produced from wooden waste and agricultural residues, which have not been used thus far. Besides production, the company will also have a distributive network", stressed Delev.

Macedonia's pellet needs will be covered by 5-7 percent of the company production, whereas Italy is to be the main exporting destination.

Regarding the price of pellets, Delev said it would be much lower compared to the current one.

Holz Consulting representatives said pellets are green energy, their use annually rising by 10 percent in the EU.

"About EUR 10 million will be reinvested in the first stage, with up to 500 people employed in the first three years", they said.

In the second stage the company will open a factory for pellet heaters, which would replace the existing ones used by people in Macedonia, since they affect the air quality in the country.

"Macedonian Forests" director Zarko Karadzoski said the memorandum stipulated that the enterprise would secure the required raw materials and other logistical support to launch the process of building the pellet factory.