Estonian Cell planning to invest 17 mln euros next year

PrintBNS – AS Estonian Cell, an aspen pulp company of Austrian background in Kunda in North Estonia is planning to invest a total 17 million euros next year.

Siiri Lahe, CFO and board member of Estonian Cell, Friday told BNS that by the investment there were plans to increase effectiveness of the factory and to ensure sustainability.

"One of the most important investments is a contract signed with Metso for widening of the packaging line, which would significantly increase the production volume and contract expenditures. Bulky strategic investments are inevitable in order to restore viability and profitability of the company," said Lauri Raid, a boards member of the company.

Metso Oyj, an industrial technology manufacturer that is listed on the Tallinn stock exchange will supply a new packaging line for the Kunda aspen pulp factory in Kunda that would start working next July.

Next year the investment program will continue by the extension of the water purification plants by means of an unaerobic purification process, which is a unique solution among European pulp wood factories. That investment is the biggest of the program now being carried out and it is essential to contract the energy costs that have increased 2.5 times during the period that the factory has been working, which has grown in cost price to 40 percent and is the main reason for the generation of loss.

Estonian Cell is part of the Austrian Heinzel Holding GmbH with a turnover of 67 million euros and it has 84 employees. The output of the factory that was launched in 2006 is exported 100 percent.

Last year Estonian Cell generated 8.87 million euros net profit at 67.8 million euros turnover. The year before the turnover of the company was 65.4 million euros and the net profit 7.45 million euros.